SUSTAINABLE ENERGY FOR ALL (SE4All) - SEforALL · SUSTAINABLE ENERGY FOR ALL (SE4All) KENYA ACTION AGENDA ... , Vision 2030. Kenya opted to be part of the SE4All Initiative ... 2.1

SUSTAINABLEENERGY

FORALL(SE4All)

KENYAACTIONAGENDA

January2016

i

ForewordThe UN Secretary-General Ban Ki-Moon launched the

Sustainable Energy for All Initiative (SE4All) in 2011. He

further declared 2012 the year for sustainable energy for

all.

This great initiative is expected to catalyse major new

investmentstoacceleratethetransformationoftheworld’s

energy systems, pursue the eliminationof energy poverty,

andenhanceprosperity.

Thegoalof the initiative is to:mobilize all stakeholders to

take concrete action toward ensuring universal access to

modern energy services; double the global rate of

improvement inenergyefficiencyand;doubletheshareof

renewable energy in the global energymix,within theUN

timeframeof2030.TheGovernmentofKenyafullyembracestheobjectivesoftheSE4AllInitiativeand

appreciatesthatitstimelinesfallwithinthoseofthenationaldevelopmentblueprint,Vision2030.

Kenya opted to be part of the SE4All Initiative, because the Government had achieved significant

stridesindevelopingtheframeworkforenergydevelopment,thankstotheEnergyPolicy,2004,and

Energy Act, 2006. Review of these two documents is almost complete and is expected to further

improve the enabling environment for the engagement of a wide range of stakeholders, and

particularlyprivate sector in thedeliveryof cleanandmodernenergy services. It alsohappensat a

time when petroleum resources have been discovered in the country and will therefore be

instrumentalindiversifyingtheenergymixandaddressingenergypoverty.

The Kenya Action Agenda and Investment Prospectus, has been developed through a consultative

process and has provided useful experience in defining the country roadmap to delivering clean

energy to all Kenyans. In collaborationwith theNewPartnership for AfricanDevelopment (NEPAD)

Energy, EU BizClim Facility and United Nations Development Organization (UNDP), MOEP and HCL

ConsultantsinitiatedandcompletedthedraftActionAgendaandInvestmentProspectus,whichwere

both taken through a validation process after extensive consultations with the stakeholders in the

KenyanEnergySector.

Thereafter theSE4AllHubat theAfricanDevelopmentBankprovided further financial assistance to

enabletherefinementofthedraftAAandIPbyConsultantsITPowerUKandIntegralAdvisoryLimited

Kenya.Therefinementincludedfourkeyelements:addressingstakeholdervalidationcommentsand

aligning the document to SE4All AA guidelines; the enhancement of the decentralized energy and

energyefficiencycomponents;creationofsynergybetweentheAAandKenya’sVision2030Medium

TermPlanningprocess;andalignmentoftheAAtothedevolvedGovernmentsystemscomprisingthe

NationalandCountyGovernments,inlinewiththeConstitutionofKenya(2010).

TheAAfinalizationprocesswas ledbytheMinistryofEnergyandPetroleum,withaTechnicalTeam

comprising UNDP, Practical Action East Africa, SNV Development Organization, WWF, SEAF-K,

ConsultantsandtheMOEP’sowntechnicalstaffintheDirectorateofRenewableEnergy–ledbythe

DirectorRenewableEnergyEng.IsaacKivaandtheDeputyDirectorRenewableEnergy,FaithOdongo,

whodoublesupastheSE4AllCountryFocalPoint.

CS Photograph

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It is therefore with great pleasure that I present the Kenyan Action Agenda and Investment

Prospectus,whichrepresents thethirdmilestone in the four-stepSE4Allprocess,namely: i)Country

Opt-in; ii) Stock-Taking and Gap Analysis; iii) Country Action Plan (Action Agenda and Investment

Prospectus)and;iv)Implementation,Monitoringandevaluation.

This AA therefore paves way for mobilization of resources and multi-stakeholder engagement to

facilitate implementation,monitoring and evaluation of high impact opportunities and high impact

initiatives and priority projects in the energy sector. It also presents the opportunity for increased

privatesectorparticipation.Itisworthwhiletorememberthatchallengeswillalwaysbetherebutthe

onusisonustodeviseinnovativemeansofovercomingthem.

TheMinistryofEnergyandPetroleumispleasedtotakeanearlyleadincontributingtotheon-going

efforts to address the energy needs of the African Continent. The Action Agenda and Investment

Prospectuswillbeinstrumentalindrivingsocio-economicdevelopmentinKenya.

Ithereforeurgedevelopmentpartners,privatesector,civilsociety,academiaandthegeneralpublicto

takeanactiveroleinrealizingtheKenyandreamtowardssustainableenergyforall.

Hon.CharlesKeter

CabinetSecretary

MinistryofEnergyandPetroleum

Kenya

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Acknowledgement

The Ministry of Energy and Petroleum wishes to express

deep appreciation to all parties who have unreservedly

offered support to enableKenya to achieve the first three

milestones towards developing its Action Agenda and

Investment Prospectus (AA/IP) under the Sustainable

EnergyforAllInitiative.

Inthisregard,specialgratitudeisextendedtothefollowing:

• EU BiZClim

Facility for funding the first draft of the SE4All Action

AgendaandInvestmentProspectus

• African

Development Bank (AfDB) for funding the National and

County SE4All Initiative awareness and final drafts of the

ActionAgendaandInvestmentProspectus.

• SNV, Practical Action Eastern Africa and WWF for funding the development of SE4All

awareness materials, Newspaper supplements on SE4All Initiative and SE4All Technical

Committeeworkshoprespectively

• UNDP,whichhasfundedtheSE4AllCountryprocesssincethelaunchoftheInitiativeinKenyain

March2012.

• The African Union for coordinating the standardisation of the formats used, and the New

PartnershipforAfricanDevelopment(NEPAD)EnergyDivision,ledbyProfMosadElmissiry,for

takingtheleadingroleinsecuringfinancialsupportfromtheEUBizClimFacility.ProfElmissiry’s

team for guiding us through the whole process, and the NEPAD Kenya Team, for ensuring

successfulengagementofstakeholderstoimprovetheinitialdraftdocuments.

• The SE4All African Hub, throughMr. Daniel Schroth, the SE4All African hub coordinator has

consistentlywalkedwithusbyprovidingreviewcommentsontheinitialdrafts.

• Consultants;HCL, IT-Power UK, Integral Advisory Limited Kenya; under the umbrella of the

AfricaSE4AllCoordinationHub,fortheirunrelentingtechnicalandfinancialsupportinpreparing

theStock-TakingandGapAnalysis, conductingconsultationswith stakeholders,and reviewing

thedraftreportsoftheActionAgendaandInvestmentProspectus.

• The EU Delegation to Kenya, led by programme officer Sanne Willems, has been ardent

supportersofenergydevelopmentinKenya,includingtheSE4Allprocess.

• The Council of Governors Secretariat, through the Ag. CEO Jackline Mogeni for supporting

CountySE4AllAwarenessCreation.

We also extend appreciations to stakeholders from line ministries of Environment and Mineral

Resources,Devolution and Planning, and Industrialization, and those from the Energy Sector, Semi-

Autonomous Government Organisations, Kenya Renewable Energy Association (KEREA), and Civil

PS Photograph

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SocietyOrganisationsthroughPracticalActionEasternAfrica, forprovidingvaluablecommentsatall

stagesofimplementation.Theirinputshelpedtoimprovethedraftstoacceptablestandards.

TheMinistryisveryTheMinistryofEnergyandPetroleumteamhasensuredsuccessfulcoordination

ofdevelopingtheSE4AllActionAgendaandInvestmentProspectus.

The Ministry looks forward to continued collaboration and support of all stakeholders in ensuring

success in the achievement of SE4All national goals in solidaritywith the spirit of theGlobal SE4All

Agenda.The short-termvision is toentrenchSE4All into theMediumTermPlanning (MTP)process,

startingwithMTPIII.Thelong-termvisionistosupportcountiestodeveloptheirrespectiveroadmaps

whilecontributingtothenationalandglobalagenda.

WeencouragecountygovernmentstosupporttheMinistryofEnergyandPetroleuminthisexercise

asweaspiretodelivercleanandmodernenergyservicestoallKenyans.

Eng.JosephNjoroge,MBS

PrincipalSecretary

MinistryofEnergyandPetroleum

Kenya

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ACRONYMSANDABBREVIATIONS

AA ActionAgenda

AFD AgenceFrançaisedeDévelopement

AfDB AfricanDevelopmentBank

CFL CompactFluorescentLamp

CFP CountryFocalPoint

CIDPs CountyIntegratedDevelopmentPlans

CSOs CivilSocietyOrganizations

CRBs CreditReferenceBureaus

DANIDA DanishInternationalDevelopmentAgency

DFID DepartmentforInternationalDevelopment,UK

DRE DirectorateofRenewableEnergy

DSM DemandSideManagement

EAC EastAfricanCommunity

EDF EuropeanDevelopmentFund

EE EnergyEfficiency

EIA EnvironmentalImpactAssessment

EIB EuropeanInvestmentBank

EPC Engineering,Procurement,andConstruction

EPP EmergencyPowerProducers

ESI ElectricitySupplyIndustry

EU EuropeanUnion

FiT

FY

Feed-in-Tariff

FinancialYear

GACC

GDC

GlobalAllianceforCleanCookstoves

GeothermalDevelopmentCompany

GDP GrossDomesticProduct

GEF GlobalEnvironmentFacility

GIZ DeutscheGesellschaftfürInternationaleZusammenarbeit(GIZ)GmbH

GoK GovernmentoftheRepublicofKenya

GTF GlobalTrackingFramework

GVEP GlobalVillageEnergyPartnerships

GWh Gigawatthour

HIIs HighImpactInitiatives

HIOs HighImpactOpportunities

HV HighVoltage

ICS ImprovedCookStove

IEA InternationalEnergyAgency

IP InvestmentProspectus

IPPs IndependentPowerProducers

IRENA InternationalRenewableEnergyAgency

KAM

KCAP

KenyaAssociationofManufacturers

KenyaCountryActionPlan

KenGen KenyaElectricityGenerationCompany

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KETRACO KenyaElectricityTransmissionCompany

KfW KreditanstaltfürWiederaufbau

KP KenyaPower

KNBS KenyaNationalBureauofStatistics

kWh Kilowatthour

KSHSKSHS KenyanShilling

KSS KenyaSE4ALLSecretariat

LPG LiquefiedPetroleumGas

LV LowVoltage

MAED

M&E

ModelforAnalysisofEnergyDemand

MonitoringandEvaluation

MDGs MillenniumDevelopmentGoals

MEPS MinimumEnergyPerformanceStandards

MER Monitoring,EvaluationandReporting

MFBs MicroFinanceBanks

MJ MegaJoules

MoEP MinistryofEnergyandPetroleum

MoWI MinistryofWaterandIrrigation

MoENR MinistryofEnvironmentandNaturalResources

MRPs MoneyRemittanceProviders

MTP MediumTermPlanning

MV MediumVoltage

MW Megawatt

NAMA NationalAppropriateMitigationAction

NGOs Non-GovernmentOrganisations

NORAD NorwegianAgencyforDevelopmentCooperation

NSE NairobiStockExchange

O&M Operation&Maintenance

PPAs PowerPurchaseAgreements

PPP PurchasingPowerParity

PPPs PublicPrivatePartnerships

RE RenewableEnergy

REA RuralEnergyAgency

REB RuralEnergyBoard

REF RuralEnergyFund

REFIT RenewableEnergyFeed-in-Tariff

REM RuralEnergyMasterPlan

RETs RenewableEnergyTechnologies

SAB SE4ALLAdvisoryBoard(Kenya)

SACCOS SavingsandCreditCo-operative

SE4ALL SustainableEnergyforAll

SEF SustainableEnergyFinance

SHS SolarHomeSystems

SIDA SwedishInternationalDevelopmentAgency

SMEs SmallandMediumscaleEnterprises

SNC SE4ALLNationalCoordinator

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SPPA/T StandardizedPowerPurchaseAgreementsandTariff

SPPAs StandardizedPowerPurchaseAgreements

SPPs SmallPowerProducers

SPPT SmallPowerPurchaseTariff

SREP Scaling-upRenewableEnergyProgramme

SSMPs SustainableSolarMarketPackages

SWER SingleWireEarthReturn

TERI TheEnergyandResourcesInstitute

TFEC TotalFinalEnergyConsumption

UN UnitedNations

UNDP UnitedNationsDevelopmentProgramme

UNEP UnitedNationsEnvironmentalProgramme

UNEPDTU UnitedNationsEnvironmentProgrammeTechnicalUniversityofDenmark

UNF UnitedNationsFoundation

UNIDO UnitedNationsIndustrialDevelopmentOrganisation

USAID UnitedStatesAgencyforInternationalDevelopment

US$ UnitedStatesDollar

WB WorldBank

WHO WorldHealthOrganisation

WRMA WaterResourcesManagementAuthority

WWF WorldWideFundforNature

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UNITSOFMEASUREMENTS

GJ Gigajoule

GWh Gigawatthour

GWp Gigawattpeak

Koe Kilogrammeofoilequivalent

Kw Kilowatt

KWh Kilowatthour

kWp Kilowattpeak

MW Megawatt

MWh Megawatthour

MWp Megawattpeak

Toe Tonnesofoilequivalent

W Watt

Wp Wattpeak

ExchangeRate:105.68KenyaShillings=1US$(September2015)

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TABLEOFCONTENTS

ACRONYMSANDABBREVIATIONS......................................................................................................................................VTABLEOFCONTENTS...........................................................................................................................................................IXEXECUTIVESUMMARY..........................................................................................................................................................1PREAMBLE...............................................................................................................................................................................51 INTRODUCTION..............................................................................................................................................................7

1.1 COUNTRYOVERVIEW......................................................................................................................................................................71.1.1 GeographyandDemography..........................................................................................................................................71.1.2 PoliticalContext...................................................................................................................................................................71.1.3 SocioeconomicContext.....................................................................................................................................................81.1.4 FinancialSector....................................................................................................................................................................9

1.2 KENYA’SENERGYSECTOR....................................................................................................................................................101.2.1 SectorWideInstitutionalFramework........................................................................................................................101.2.2 LegalandRegulatoryContext......................................................................................................................................111.2.3 EnergyResources-DemandandSupply....................................................................................................................121.2.4 ThePowerSector...............................................................................................................................................................121.2.5 TheProcessHeatSector..................................................................................................................................................131.2.6 EnergyEfficiency................................................................................................................................................................14

2 PARTI–VISIONANDTARGETSTHROUGH2030...................................................................................................152.1 KENYA’SOVERALLVISIONFORSE4ALL............................................................................................................................152.2 INTEGRATIONOFACTIONAGENDAINTOMTPPROCESS..........................................................................................162.3 ENERGYSECTORTRAJECTORY............................................................................................................................................162.4 THEMETHODOLOGICALAPPROACHINSUPPORTOFKENYA’SSE4ALLGOALS..................................................19

2.4.1 BaselineandQuantitativeProjectionsonAccess.................................................................................................192.4.2 TheMethodologicalApproachtotheBaselineandQuantitativeProjectionsonEnergyEfficiency.222.4.3 TheMethodologicalApproachtotheBaselineandQuantitativeProjectionsonRenewableEnergy 24

2.5 SECTORAL-ENERGYNEXUS..................................................................................................................................................263 PARTII–PRIORITYACTIONAREAS..........................................................................................................................29

3.1 ENERGYACCESS......................................................................................................................................................................293.1.1 Electricity...............................................................................................................................................................................293.1.2 CleanCooking......................................................................................................................................................................333.1.3 ExistingGaps.......................................................................................................................................................................343.1.4 HighImpactInitiativesforEnergyAccess................................................................................................................373.1.5 RelevantHigh-ImpactOpportunities.........................................................................................................................383.1.6 Riskmanagementforelectricityaccess....................................................................................................................403.1.7 Riskmanagementforcleancookstovesandfuels................................................................................................41

3.2 RENEWABLEENERGY............................................................................................................................................................423.2.1 StatusandTrajectory.......................................................................................................................................................423.2.2 ExistingPlans/Strategies................................................................................................................................................433.2.3 ExistingGaps.......................................................................................................................................................................443.2.4 HighImpactInitiativesforAchievingtheOverarchingObjectiveofRenewableEnergy.......................443.2.5 RelevantHigh-ImpactOpportunities.........................................................................................................................483.2.6 Risksandmitigationforrenewableenergy.............................................................................................................50

3.3 ENERGYEFFICIENCY...............................................................................................................................................................533.3.1 CurrentStatusandTrajectory.......................................................................................................................................533.3.2 ExistingPlans/Strategies................................................................................................................................................533.3.3 ExistingGaps.......................................................................................................................................................................543.3.4 HighImpactInitiativesforAchievingtheOverarchingObjectivesofEnergyEfficiency........................543.3.5 RelevantHigh-ImpactOpportunities.........................................................................................................................563.3.6 Riskandmitigation...........................................................................................................................................................57

3.4 ADDITIONALNEXUSACTION..............................................................................................................................................583.4.1 CurrentStatusandTrajectory.......................................................................................................................................58

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3.4.2 ExistingPlans/Strategies................................................................................................................................................583.4.3 Gaps........................................................................................................................................................................................583.4.4 HighImpactInitiativesforAchievingtheOverarchingNexusObjectives...................................................593.4.5 RelevantHigh-ImpactOpportunities.........................................................................................................................603.4.6 Riskandmitigation...........................................................................................................................................................62

3.5 ENABLINGACTIONAREAS...................................................................................................................................................633.5.1 EnergyPlanningandPolicies........................................................................................................................................63CriticalAreas............................................................................................................................................................................................63ActionsNeeded.......................................................................................................................................................................................633.5.2 BusinessModelandTechnologyInnovation...........................................................................................................65CriticalAreas............................................................................................................................................................................................65ActionsNeeded.......................................................................................................................................................................................653.5.3 FinanceandRiskManagement....................................................................................................................................66CriticalAreas............................................................................................................................................................................................66ActionsNeeded.......................................................................................................................................................................................663.5.4 CapacityBuilding...............................................................................................................................................................67CriticalAreas............................................................................................................................................................................................67ActionsNeeded.......................................................................................................................................................................................673.5.5 AwarenessandKnowledgeManagement...............................................................................................................683.5.6 CrossCuttingEnablingActions.....................................................................................................................................68

4 PARTIII–COORDINATIONANDFOLLOW-UP........................................................................................................694.1 THEPROCESSOFDEVELOPMENTOFTHEACTIONAGENDAANDINVESTMENTPROSPECTUS.....................................................694.2 ACTIONAGENDA’SIMPLEMENTATION...........................................................................................................................704.3 INSTITUTIONALSTRUCTURES.............................................................................................................................................70

4.3.1 Structure................................................................................................................................................................................704.3.2 ProposedNationalSE4ALLCoordinationStructure..............................................................................................70......................................................................................................................................................................................................................714.3.3 IntegratedapproachbetweenNationalandCountyGovernments..............................................................72

4.4 PROGRAMMINGOFACTIONS............................................................................................................................................734.4.1 ImplementationMethodology.....................................................................................................................................734.4.2 ImplementationTimeline...............................................................................................................................................744.4.3 Kenyan’sActionAgenda’sCoordination...................................................................................................................75

4.5 MOBILIZATIONOFRESOURCES..........................................................................................................................................754.6 EFFECTIVEMONITORINGANDEVALUATION................................................................................................................76

4.6.1 Guidelines.............................................................................................................................................................................764.6.2 MonitoringPlan.................................................................................................................................................................764.6.3 EvaluationPlan...................................................................................................................................................................774.6.4 ReportingPlan....................................................................................................................................................................77

4.7 FOLLOW-UPANALYSIS..........................................................................................................................................................774.8 LINKINGTOINVESTMENTPROSPECTUS.........................................................................................................................78

5 REFERENCES................................................................................................................................................................79ANNEX1:DEFINITIONS......................................................................................................................................................80ANNEX2:THESUSTAINABLEENERGYFORALL(SE4All)INITIATIVE...........................................................................81ANNEX3:STAKEHOLDERSCONSULTEDINTHEDEVELOPMENTOFAA.....................................................................83ANNEX4:CONSULTATIONUNDERREVIEWANDCOUNTYAWARENESS...................................................................89ANNEX5:PROCESSOFDEVELOPINGAAINKENYA.......................................................................................................96ANNEX6:KENYAENERGYINSTITUTIONSANDTHEIRFUNCTIONS.............................................................................99ANNEX7:ENERGYINTENSIVEFLAGSHIPPROJECTS....................................................................................................101ANNEX8:ENERGYFORECASTINGWH(MARCH2013LCPDP2013-2033)...............................................................102ANNEX9:PROPOSEDOUTLINEOFTHECOUNTYENERGYPLANNINGFRAMEWORK............................................103ANNEX10:INDICATORSFORKENYASE4AllINITIATIVE...............................................................................................104FIGURESANDTABLES

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LISTOFFIGURES

Figure1:ProposedActionsandTimelinesforKenya ........................................................................................ 6Figure2:GDPgrowthandGDPpercapita(2009-2012) .................................................................................... 8Figure3:Individualsusingmobilephonefinancialservices ............................................................................ 9Figure 4: Energy Demand Forecast 2012- 2033 ..................................................................................... 18Figure 5: Peak Load Forecast 2012-2033 ............................................................................................... 18Figure6:Projectedgenerationmixinyear2030 ........................................................................................... 26Figure7:Proposedstructure ....................................................................................................................... 71Figure8:KeycomponentsfortrackingaccesstoenergyundertheGTF .......................................................... 76Figure9:ActionAgendaandInvestmentProspectuslinkages ........................................................................ 78Figure10:SE4AllInitiativegoals .................................................................................................................. 81Figure11:ActionAreasoftheGlobalActionAgenda ..................................................................................... 82Figure12:SE4ALLframeworktowardsSustainableDevelopment ................................................................... 82Figure13:ThePowerSector–organizationchart ..................................................................................... 100Figure14:RenewableEnergyDirectoratechart .......................................................................................... 100

Listoftables

Table1:SE4AllInitiativeKenyatargets ........................................................................................................... 1Table2:GuidelinesfordevelopingSE4Allactionagenda ................................................................................. 5Table3:ShareoftheFinancialSectortoGDP ................................................................................................. 9Table4:KenyaSE4ALLTargetsuntil2030undereachSE4ALLgoal ................................................................. 15Table5:GDPgrowthscenarios ................................................................................................................... 17Table6:Ongridandoffgridconnectivityprogression ................................................................................... 20Table7:Levelsofaccesstoelectricityby2022 .............................................................................................. 20Table8:Cleancookingfuelsprogressionforhouseholdsuntil2030 ............................................................... 22Table9:WorldBankEnergyIntensityDefinition ........................................................................................... 22Table10:HistoricalProgressionofKenya'sEnergyIntensity .......................................................................... 23Table11:KenyaTargetsforEI ..................................................................................................................... 23Table12:KenyaTargetsforREmixinpowergeneration .............................................................................. 25Table13:Indicativegoalsfornexusissues .................................................................................................... 26Table14:RiskManagement ........................................................................................................................ 40Table15:Riskmanagementforachievinguniversalaccesstomoderncleancookstovesandfuels .................... 41Table16:Riskmanagementforrenewableenergy ...................................................................................... 50Table17:Riskmanagementinachievingtheenergyefficiencytargets ......................................................... 57Table18:PotentialAAImplementationSequence ......................................................................................... 74Table19:IdentifiedEnablingEnvironmentandGapsfromStockTakingandGapAnalysis ................................ 96

1

EXECUTIVESUMMARY

ThisActionAgenda(AA)presentsanenergysector-widelong-termvisionspanningtheperiod2015to

2030.ItoutlineshowKenyawillachieveherSE4Allgoalsof100%universalaccesstomodernenergy

services,increasetherateofenergyefficiencyandincreaseto80%theshareofrenewableenergyin

herenergymix,by2030.

Accesstomodernenergyservices1 isanecessarypreconditionforachievingdevelopmentgoals that

extend far beyond the energy sector, such as poverty eradication, access to cleanwater, improved

public health and education, women's empowerment and increase food production. The United

Nations (UN) Secretary General launched the SE4All Initiative in September 2011 to achieve three

inter-relatedgoalsby2030:

• Ensuringuniversalaccesstomodernenergyservices;

• Doublingtheglobalrateofimprovementinenergyefficiency;

• Doublingtheshareofrenewableenergyintheglobalenergymix;

The SE4All Initiative requires countries to set quantitative objectives for each of the three goals as

showninTable1.

Table1:SE4AllInitiativeKenyatargets

Universalaccesstomodernenergy

services

Doublingglobalrateof

improvementofenergy

efficiency

Doublingshareofrenewable

energyinglobalenergymix

Percentageof

population

withelectricity

access

Percentageof

populationwith

accessto

moderncooking

solutions

Rateofimprovementin

energyintensity

Renewableenergysharein

TotalFinalEnergy

Consumption

Power Heat

100%2 100% -2.785%3/year 80% 80%

SE4All proposition is that, to achieve the initiative’s objectives, all stakeholders need to play a

leadershiprole:

• NationalandCountyGovernmentsmustdesignandimplementasetofintegratedactions(i.e.

actionagendaandinvestmentprospectus).

• Privatesectorprovidesbusinessandtechnicalsolutionsanddrivesinvestmentand

• Civilsocietyorganizations(CSOs)advocateandmonitorpublicpolicyandbusinessesactions.

1DefinitionofrelatedtermsinAnnex1

2Projectedtobereachedby2022

3Theenergyintensityisexpressedinnegativeasitsimprovementisareductionontheenergyintensity

2

In this regard, the Government of Kenya (GoK) has developed the present AA building on existing

plans/programmes/strategiesandembracingSE4Allguidelinesprinciples.InthecontextoftheSE4All,

access tomodernenergy involveselectricityandenergy forcooking.Kenyahaschosen thebaseline

year for electricity access as 2012. For the purpose of the AA, the definition of electricity access is

connections to the national grid system or distributed (off-grid) electricity solutions which include

SolarHomeSystems(SHS),mini-grids),whichisconsistentwiththeGlobalTrackingFramework(GTF)

andwith themulti-tier approach underGTF. In the baseline year, only 23%,which represents 1.97

millionhouseholdsof thepopulation,hadgridelectricity supply.Access tomoderncooking services

referstoaccesstoimprovedcookstovesandnon-solidfuels.Thebaselineyearforaccesstoimproved

cookstoves is2013,beingatthelevelof3.2millionhouseholds,accordingtomarketassessmentof

CleanCookstovesAssociationofKenya(CCAK)undertheKenyaCountryActionPlan2013(KCAP).Over

80%ofKenyansrelyonthetraditionaluseofbiomassastheprimarysourceofenergyforcookingand

heatingwith firewoodcontributing68.7%andcharcoal13.3%.TheKenyangovernment isputting in

placemeasurestoregulatethefuelwoodsectorwithadraftForestActenvisagingasix-pointsystem

of control fromproducer to consumer. The 2009 charcoal production regulations developedby the

KenyaForestServiceareyettobeadopted.

According to March 2011 Least Cost power Development Plan (2011-2031), the required installed

capacityforreferencescenarioin2030willbe15,065MW.Thepresentvalueforthisinstalledcapacity

amounts toU.S.$41.4billion, (committedprojectsexcluded)expressed inconstantpricesasof the

beginningof2010.Thetransmissiondevelopmentplan indicatestheneedtodevelopapproximately

10,345KMofnew linesat anestimatedpresent costofUS$4.48Billion. Transmissiondevelopment

duringtheplanninghorizonwillbebasedon132kV,220kVand400kV.

According to 5 year (2013-2017) corporate strategy plan for the electricity sub-sector for, Kenya

targets installed capacity of 6,762MW consisting of 49.9% renewable energy, 15.5% Natural gas,

28.4%Coaland6.2%dieselby2018. Thetotalgenerationcapitalexpansioncostupto2018cost is

estimatedatUS$7.78billionunderthemoderate.Thereare41transmissioninvestmentprogramme

associatedwithimplementationoftheadditional5,000+MWinvestmentby2018atanestimatedcost

ofUS$3.7billion.Thecorporatestrategyplan targets3,325kmofnewtransmission linesand3,178

MVAofnewtransmissionsubstationcapacityfortransmissionsystemsand3768kmofnewMVlines.

Thedistributionsystemtargets69newsubstationsofcapacity6,225MVA;20newbulksupplypoints

of capacity1237.5MVA fordistributionsystems,and70%householdconnectivity toelectricity.The

estimatecostofimplementingthedistributionsystemisUS$1.3billion.Implementersoftransmission

anddistributionprojectsareKenyaElectricityTransmissionCompany(KETRACO)andKenyaPowerand

LightingCompany(KPLC)respectively.

Based on the Stocktaking and Gap Analysis report and discussions with key stakeholders, the AA

includesthefollowingpriorityactions:

• Improvingthepolicyandregulationoftheenergysector:

o Develop specific regulations for sustainable efficient charcoal production and usemethodslinkedwithappropriateforestrymanagementplansandafforestationefforts.

o Developaconcretepolicy,strategyandtargetstoregulatebiomassenergy, inparticular

thecleancookingsector.

3

• HumanandInstitutionalCapacityDevelopment:

o TheSE4AllSecretariatwilldevelopaprogrammetoimprovethecapacityofnationaland

localinstitutionsaspartofacceleratingrenewableenergytechnologytransferanduse.

• Increaseaccesstoelectricity:

o TheLastMileConnectivityProjectandfinancingconnectionsfor“under-grid”areas:the

project will extend the low voltage network to reach households locatedwithin a 600

metre-radiusfromatransformeraswellasthe installationofprepaidenergymeters. In

addition, financial support will be available for households unable to afford the KShs

15,000 (~US$ 150) fee required to be connected. Re-payments can be spread over a

periodofuptotwoyears,orKShs625(~US$8)loadedontheirmonthlybill.

o Opening the competition to private players by creating favourable legislation and

regulatione.g.theexemptionofVATonsolarproductsand,morerecently,enablingsolar

micro-gridcompanyPowerHiveEastAfricatobecomethecountry’sfirstlicensedprivate

utilitytogenerate,distributeandsellpowertothepublic4.

o TheMinistryofEnergyandPetroleum(MoEP)toappointfocalpointfortheEnergyAccess

MarketAcceleratorthatwillimplementacollaborationmechanismandassistancefacility,

facilitating the coordination of activities in the energy access market, connecting

enterpriseswithserviceproviders,andliaisingwiththeinternationalcommunityandlocal

governmenttocommunicateongoinggapsandbrokereffortstobridgethem.

• Increaseaccesstomoderncookingsolutions:

o Accesstomoderncookingcanhaveatransformativeeffectonlives,forexamplereducing

indoor air pollution that causes ill-health and premature death, particularly to women

andchildren.MoEPtoleadonthecreationofacross-sectoralinitiativetobringtogether

differenton-goingeffortsandimprovecoordinationacrossagencies,privatesector,CSOs

andNGOs,andimprovecapacity.

o MoEPtofinalizeonthedevelopmentofbioenergyandLPGstrategythatwilldefineaction

plansforimplementationofimprovedcookstovesandbiofuels.

o Developwoodfuels(firewoodandcharcoal)supplyanddemandmasterplanforthemain

supply and demand centres (including tree cover inventory, classification of harvesting

zones, relevant data, analysis of wood fuels flows, development of conditions and

technicalspecificationsforwoodfuels,productionanduse).

• MoEPtoworkacrossGovernmentAgenciesandwithstakeholdersto:

o DevelopandimplementaNationalEnergyEfficiencyProgrammetoassessopportunities

forenergyefficiencyinmultiplesectors.

o Implement and enforce a labelling scheme for electric appliances. To increase its

efficiency and impact, a national awareness campaign targeting consumers and

distributorswillbecarriedout.

4http://allafrica.com/stories/201507132822.html

4

o MoEP to lead in awareness creation on the use of clean cookstoves and fuels as a

healthbenefittopreventdeathsandsicknessfromindoorairpollution.

o MoEPtopromoteinstitutionalcapacitydevelopmentandcreateawarenessonenergy

efficiency.

o Implement and develop cookstoves dissemination projects and define and scale up

certificationprocessesforresidentialandcommercialcookstoves.

AsKenyaintegratesSE4Allintoitsnationalplanning,thetrajectorytowardsthecountry’sSE4AllGoals

isinformedbythefollowingphases:

• Transition (2015–2017).During thisperiod,Medium-TermPlanning2 (MTP2), thecountry

continues with its current strategies and starts a national dialogue toward the adaptation,

updateandalignmentoftheexistinginterventionsunderthecountry’sSE4ALLagenda.During

thisperiod,allnewstrategiesand interventions forenergysectorwillhave tobeconsistent

withKenya’sSE4AllAA.

• PhaseI(2018–2022).SE4AllbecomethekeyenergysectorreferencefortheMTP3process.

In this context, the AA will be assessed by its progress and additional interventions and

InvestmentProspectuses(IP(s))shouldbeincorporatedasneeded.

• PhaseII(2023–2027).TheAAandtheMTP4willbereassessedbyitsprogressandadditional

interventionsandIP(s)shouldbeincorporatedasneeded

• PhaseIII(2027–2030).TheAAandtheMTP5willbereassessedbyitsprogressandadditional


TheSE4AllprocessinKenyaincludesthecreationoftheSE4AllSteeringCommitteewhichwillinclude

representation from thepublic sector, private sector, civil society anddonor community to support

thedesignoftheAAandtheIP.OncetheAAisvalidatedandadopted,thisCommitteewillremainin

place andmeet regularly to provide support and advice to the Kenya SE4All Secretariat (KSS). The

SecretariatistheAA’sleadadvocacyandmanagerialunitthat:

• WillmonitorSE4Allprojectsandstudies,whichshouldremainundertheresponsibilityofthe

relevantGovernmentAgenciesandinstitutions

• TakestheresponsibilityforrealizingSE4Allgoals,implementingtheIP(s)associatedtothisAA,

andapplyingtheSE4AllMonitoringplan

• Is the focalpoint forexchanging informationwiththeSE4Allglobal initiative,especiallywith

theSE4AllGlobalFacilityTeam,theSE4AllAfricaHub,andtheSE4AllThematicHub

• Presents for review by the SE4All Coordination Committee and GoK authorities draft

modifications to the AA and proposes any other “mid-course” adjustments that may be

neededtokeepKenyaonitspathtoachieveitsSE4Allgoals

5

PREAMBLE

Followingthe launchoftheSE4All in2011,andKenyaopting into it in2012(Annex25).TheSEA4All

InitiativewaslaunchedinKenyabyUnitedNationshigh-levelmissioninMarch2012.UnitedNations

Development Programme (UNDP) New York supported the development of the template for

stocktaking and gap analysis. A Country Focal Point (CFP) was appointed within the Directorate of

RenewableEnergy intheMinistry.TheMinistryformedamulti-stakeholdertaskforcetooverseethe

developmentofKenya’sSE4Allframework.ThedevelopmentoftheAAwasaninclusiveprocesswith

national ownership that considered cross-sectoral impact of national SE4All goals (see Annex 56).

Annex3presentsalistofsomeoftheCivilSocietyOrganizations(CSOs),agenciesandprivatesector

consultedduringthedevelopmentof thisdocument.Additionalconsultationprocessescontinuedto

expand the coverage and eventual buy-in of wider stakeholders at both National and sub-National

levelstosupporttheimplementationoftheAA.Annex4presentsalistofsomeoftheCSOs,private

sector and Counties involved. The recognition by GoK ensures that the AA becomes part of the

nationaldevelopmentplansandbudgetsystem,foreffectiveimplementation.

Thedevelopmentof theAAwasguidedby theAfricaSE4AllHubGuidelines fordevelopingnational

SE4Allactionagendas(NPCA/AUC/UNDP/AFDB)thatembracestheprinciples;

Table2:GuidelinesfordevelopingSE4Allactionagenda

GuidelinePrinciples ResponseintheAAdevelopment

Buildingonexisting

plans/programmes/strategies;

Existingpolicies,plans,strategiesintheenergysectorandwithintheeconomyhavebeen

consideredinthedevelopment(Annex5)

Politicalcommitmentandleadership; AttheNationallevel,MoEPisinchargeoftheSE4AllCountryProcessandallocateddedicated

seniorcivilservantstomanagetheproject.MoEPthroughtheCouncilofGovernors(CoG)

secretariathasbroughtonboardSub-National(County)governmentstosupporttheSE4All

InitiativeinKenya.

Abalancedandintegratedapproach; TheAAdevelopmenthasconsideredallaspectsoftheenergysectorthatarerelevanttoSE4All

andhasalsoconsideredinterventionsthatcanmeetmultipleSE4ALLgoalsforKenya

Aninter-ministerialandcross-sectoral

approach;

Inter-ministerialCommitteehasbeenformedtotakechargeofcross-sectoralissueshavean

impactsonachievementofSE4ALLgoalsforKenyae.g.land,water,forestry,agriculture,gender,

healthandthenecessaryreformsproposed

Adherencetosustainabledevelopment

principles;

TheAAdevelopmenthasfocusedoncleanmodernandrenewableenergyresourcesthatcan

improveeconomicperformanceandsocialwelfareandcontributetogenderequality.

Participationandmeaningful

involvementofallstakeholders;

MoEPformedacoreteamwithrepresentationfromgovernment,privatesector,development

partners,CivilSocietyOrganisationsandprivatesectorthatsteeredthedevelopmentofAA(See

annex6).Keyenergystakeholdershavebeenconsultedeitherbilaterallyoraspartofgroup

stakeholderworkshopsasperAnnex3andAnnex4.Inaddition,participationofstakeholders

(CSOs,privatesectoretc.)inTechnicalteamsinvolvedinthedevelopmentoftheAA.

Genderequalityandinclusiveness;and WhendeterminingwhichpriorityareastoconsiderfortheAA,genderperspectivehashavebeen

integratedespeciallyintermsofaddressingmoderncookingservicesthatreducetheburdenof

woodandfuelcollectionbywomenandchildrenandinprioritisationofanddecentralized

solutions.

Transparencyandaccountability Apartfrominvolvementofkeyenergystakeholdersinthemappingofpriorityareas(projectsand

reforms),theMoEPhasalsobeeninvolvedinleadingtheworkshops,guidingtheprocessand

endorsingthepriorityareasthatarepresentedinthisAAReport.

TheMoEPinitiatedthedevelopmentoftheActionAgendaandInvestmentProspectus(AA/IP)in2014

aftercompletionofstocktakingandgapanalysisinJune2013.Thesedevelopmentshavebeeninline

5SE4ALLinitiativeprocessinKenya

6ProcessofdevelopingAAinKenya

6

withtheSE4Allprocess,reflectedintheFigure17.

Figure1:ProposedActionsandTimelinesforKenya8

The above SE4All timelines fall within those of Kenya’s national long-term development blue print,

Vision 2030, whose purpose is to create a globally competitive and prosperous nation with a high

quality of life by 2030.The vision is anchored on three key pillars; economic, social and political

governance.TheMediumTermPlan(MTP)operationalizestheVision2030.TheMTPalso integrates

international community development goals such as Global Sustainable Development Goals (SDGs).

The first MTP was implemented between 2008 and 2012. The current (second) MTP outlines the

policies,programmesandprojectswhichtheGovernment intendsto implementduringthefive-year

periodstartingfrom2013to2017.

The SE4All9 Global Action Agenda (AA) was issued in April 2012 and it is based on a framework

proposingaglobalAA foruniversalenergyaccess, fosterEEandboost investment inRE.TheSE4All

goals are expected to be achieved through a number of High Impact Initiatives (HIIs), which are

targeted,on-the-groundprogramsorprojects,andcategorizedintoHighImpactOpportunities(HIOs).

7TheProcesshasfoursteps,forpurposeofillustratingtheactivitiespertaining,theAAandIPstepfourwassplitintwoand

thereforefivestepsareshown.8Adaptedfrom(Putti,2012)

9TheSE4ALLinitiativeisdescribedinAnnex1

7

1 INTRODUCTION

1.1 COUNTRYOVERVIEW

1.1.1 GeographyandDemography

Kenyaislocatedacrosstheequator,stretchingfromlatitudes4°Northto4°Southandlongitudes34°

to41°Eastcoveringanareaofapproximately582,646squarekilometres.Thepopulationattheendof

2014was estimated to be45.56 million up from38.6million10 reported in the last Population and

HousingCensus(2009),with50.3%beingwomencomparedto49.7%menwiththerural/urbanshare

of67.7%and32.3%respectively.

1.1.2 PoliticalContext

Kenya is a multi-party state governed through a devolved government system introduced by the

ConstitutionofKenya(2010).TheEnergySectordevelopment is influencedbythepoliticaldecisions

pertaining topolicies andbudgetary resourceallocations. Kenyapolitical systemhas recognised the

fact that sustainable clean energy is required for the achievement of Vision 2030 and have

incorporateditmanifestos.MacroeconomicContext

Vision 2030 whose purpose is to create a globally competitive and prosperous nation with a high

qualityoflifeby2030currentlydrivesKenya’seconomicagenda.TheVisionisanchoredonthreekey

pillars: economic, social and political governance. The Vision is operationalized through 5-year

MediumTermsPlans(MTP),whichoutlinesthepolicies,programmesandprojectsforimplementation

inthefive-yearperiod.Thereareaseriesofdevelopmentandsectorpoliciesandstrategies inplace

whichaid inthe implementationoftheMTPsthatsupporteffortstorealizetheVision.Thecounty’s

nationalincomeof$55.2billionwas25%higherandgrossdomesticproduct(GDP)percapita,literally,

from$994to$1,256,followingtherebasingofitsGDPinSeptember201411.

FollowingtherebasingofherGDP inSeptember2014,Kenya joinedthe listof lowermiddle income

economies.Thecountry’sGDPisKShs3,798billion(US$39.15billion)12,withagricultureandforestry

contributing the largest–25.3%ofGDPbyactivity13and13.1%togrowth (although itsgrowth rate

was also among the lowest, at 2.9%). GDP per capita (constant) is KShs 40,345 (US$ 416). Gross

national income(GNI) in2012wasUS$860/capita14comparedtoanaverageofUS$7500forUpper

MiddleIncomecountries.

Averagepercapitaenergyconsumptionbetween1971and2011was450koe15rangingfrom430koe

in1971and482koein2010comparedtoanaverageof2000koeforUpperMiddleIncomes.External

debtservicechargeaspercentageofGDPis1.2%andexternaldebtserviceasapercentageofexports

ofgoodsandservices.Totalpublicdebtin2013/14fiscalyearwas43%ofgrossdomesticproduction

10The2009KenyaPopulationandHousingCensus

11 http://www.worldbank.org/en/news/feature/2014/09/30/kenya-a-bigger-better-economy 12Converted at (11 June 2015) CBK mean rate of 97 (https://www.centralbank.go.ke/index.php/interest-rates/commercial-banks-weighted-av). 13 Current Prices, 2010 – 2013 14 http://en.wikipedia.org/wiki/List_of_countries_by_GNI_(nominal,_Atlas_method)_per_capita 15 http://www.theglobaleconomy.com/Kenya/Energy_use_per_capita/

8

(GDP).ThesuccessofSE4AllInitiativeinKenyawillbehingedpartlyontheabilityofthegovernment

tomobilizeinvestmentfromexternalandinternalsources.

Thecountry’seconomygrewby5.3%in2014andisprojectedtogrowby6%in201516.Theresilience

islikelytocontinuewiththeeconomyexpandingat6.6%in2016and6.5%in2017,accordingtothe

latestWorldBankGroup’seconomicanalysis.

Figure2:GDPgrowthandGDPpercapita(2009-2012)

DataSource:KenyaNationalBureauofStatisticsEconomicSurvey

1.1.3 SocioeconomicContext

TheWorldBankestimatesthatpovertylevelhasdeclinedfrom47%in2005to34-42%in201417.GDP

percapitainKenyaaveraged485.86US$from1960until2014,reachinganall-timehighof648.84US$

in 2014 and a record low of 155.69 US$ in 1960. According to Kenya Facts and Figures 201418,

agriculture, forestry and fishing industry is the second largest employer by sector (15.3%), after

education (17.7%). The total working population in public (30%) and private sector (70%) is 2.26

million19.About81.6%ofthepopulationearnsamonthly incomeofKShs10,000(US$103)or less

20.

The high levels of poverty incidence in Kenya remain a serious impediment to increasing access to

modernenergyservices.In2009,45.6%ofKenyanslivedbelowthepovertyline.Themajorityofthe

poor inruralareasarefoodandsubsistencefarmersandthosewhoderivethebulkoftheir income

from the informal sector; the urban poor aremainly in the informal sector. About a third of rural

households are female-headed, and two-thirds of them have nomale support, in otherwords, are

headedbywidowed,divorced,orseparatedwomenwithchildren.Theincidenceofseverepovertyis

significantly higher among such households—44 percent compared to 20 percent for male-headed

households.Amajorcauseofpovertyamongdivorcedandseparatedwomenisthelossofaccessto

land.Suchwomenoftenfleetourbanareaswheretheyremainpoor21.ThismeansthatmanyKenyans

will not afford the modern energy carriers envisaged in the SE4All objectives unless appropriate

strategiesareformulatedthataddresstheinherentpovertybarrier.

As observed earlier, many energy projects have in the recent past stalled owing to social conflicts

16 Kenya Facts and Figures 2014, Kenya National Bureau of Statistics 17SynopsisforKenyacountrypolicypaper2013

18KenyaNationalBureauofStatistics,2014

19KenyaFactsandFigures2014,KenyaNationalBureauofStatistics

20KenyaFactsandFigures2014,KenyaNationalBureauofStatistics

21 http://web.worldbank.org/

9

Figure 3: Individuals using mobile phone

financialservices

around the issueof landcompensation.Furthermore, theKenyanconstitutionemphasizes theneed

forpublicparticipation inthedecisionstouchingontheuseof landandotherresourceswithintheir

localities.

Povertyremainsapervasivenationalproblemtodate.Itisasocialproblemcharacterizedbylowlevels

of income and inadequate access to basic services. Socio-economic functions previously under the

national government are devolved progressively. Energy policy including electricity and gas

reticulation and energy regulation is the responsibility of the National Government while county

planninganddevelopment,underwhichelectricityandgasreticulationandenergyregulationfall, is

theworkofCountyGovernments22.

1.1.4 FinancialSector

Kenya’s financial sector comprises of the banking, capital markets, insurance industry, pension

industry,safetynetsandresolutioninstitutionsliketheKenyaDepositInsuranceCorporation,financial

marketsinfrastructure,andSavingsandCreditCo-operative(SACCOS)sub-sectors.Asaproportionof

GDPatCurrentMarketPrices,totalassetsofthefinancialsectorexcludingcapitalmarketsaccounted

for108.00%in2013upfrom96.48%in2012.Totalvalueofequitymarketcapitalizationaccountedfor

50.57%ofGDP(Table3).

Table3:ShareoftheFinancialSectortoGDP

GDP/SUB-SECTORASSETS 2012 2013

KShsinMillion ShareofGDP KShsinMillion ShareofGDP

NominalGDP 3,403,547 N/A 3,797,988 N/A

BankingAssets 2,330,335 68.47% 2,703,394 71.18%

PensionAssets 548,700 16.12% 696,680 18.34%

InsuranceAssets 311,000 9.14% 366,252 9.64%

SaccosAssets 93,765 2.75% 335,437 8.83%

TOTAL 3,283,800 96.48% 4,101,763 108.00%

EquitiesMarketCapitalization 1,272,002 37.37% 1,920,719 50.57%

Source:KenyaFinancialSectorStabilityReport2013

The banking subsector accounted for 71.18%,

followedbypensionand insurance subsectors in

thatorder.This showssignificant contributionof

thesectortotheoveralleconomy,makingitvery

criticaltothestabilityoftheeconomy.

As of end of 201423, there were 44 banking

institutions(43commercialbanksand1mortgage

finance company), 8 representative offices of

foreign banks, 9 Microfinance Banks (MFBs), 2

Credit Reference Bureaus (CRBs), 13 Money

Remittance Providers (MRPs) and 87 Foreign Exchange (forex) Bureaus. Out of the 44 banking

institutions, 30 are locally owned banks comprising of 3 with public shareholding and 27 privately

22ConstitutionofKenya(2010),FourthSchedule,DistributionoffunctionsbetweenNationalandtheCountyGovernments

23KenyaFinancialSectorStabilityReport2014

10

ownedwhiletheother14areforeignowned.The9MFBs,2CRBs,13MRPsand87forexbureausare

all privatelyowned. Further, 10of the44banking institutions are listedon theNSE.As seen in the

figure324,morethandoublethenumberofadultsinKenyausemobilephonefinancialservices(11.5

million)comparedwithbanks(5.4million).

The East Africa Community (EAC) Common Markets Protocol, effective July 1, 2010, prioritizes

regionalizationof theEastAfricanCapitalMarketswith theaimofprovidinganopportunity for the

growthanddeepeningofthecapitalmarketsintheregiontopromoteeconomicgrowth.

1.2 KENYA’SENERGYSECTOR

1.2.1 SectorWideInstitutionalFramework

The Ministry of Energy and Petroleum (MoEP) is the Governments apex institution in the energy

sector. MoEP’s directorates encompass Petroleum, Electrical Power, Renewable Energy and Geo-

exploration.Duetothecross-cuttingnatureofenergy,otherGovernmentministrieshaveasignificant

roletoplayinenergypolicymatters25.

SessionalPaperNo.4of2004andtheEnergyActNo.12of2006restructuredtheenergysectorinabid

to facilitatehigh-levelperformanceas shown inannex6. The roleof thekey institutionswithin the

MinistryarepresentedinAnnex6.

InstitutionalarrangementsintheenergysectorinKenyacanbepresentedaseitherpublicorprivate,

even though the public sector significantly controls the current energy mix, where wood fuel is

dominantinthetraditionalsector(ruralandurbanpoorcommunities),whilepetroleumandelectricity

are the dominant fuels in the modern economy. In both the public and private sector, further

institutionalcategoriesareevident.

Publicsector institutionscomprisepolicy-makers, regulators,parastatals, specialpurpose formations

anddevelopmentpartners.Inthiscategory,lineministriesactbothascustodiansofpolicyaswellas

supervisory organs, controlling all the other institutions. The parent is the Ministry of Energy and

Petroleum, to which all other relevant line ministries, regulators, state-owned enterprises, special

purposeformationsanddevelopmentpartnersreferonmattersrelatedtoenergy.

24FinAccessNationalSurvey2013,Kenya

25NationalEnergyPolicy,draft,August2015

11

1.2.2 LegalandRegulatoryContext

Kenya has a series of development and sector policies and strategies26, relevant to SE4All. These

strategicdocumentsandactivitiesincludethefollowing:

• CurrentEnergyPolicyandLegislation:

o EnergyPolicy§ The Sessional Paper No. 4, 2004 on Energy lays the policy framework uponwhich

cost-effective,equitable,affordable,adequateandqualityenergyservicesaremade

available to the domestic economy on a sustainable basis over the period 2004 -

2023.TheagendaforactionintheSessionalPaperincludedenactmentofanewand

robust Energy Act (Energy Act 2006) to, among other things, create a common

energysectorregulator,theEnergyRegulatoryCommission.

o EnergyAct,2006§ TheEnergyAct,No.12of2006consolidatedtheElectricPowerActNo.11of1997

and the Petroleum Act Cap. 116. The Act, among other things provided for the

establishment of, powers and functions of the EnergyRegulatory Commission as a

successortoERB.

o ElectricityRegulations§ TheElectricPower(ElectricalInstallationWork)Rules,2006,

§ TheEnergy(ComplaintsandDisputeResolution)Regulations,2012

§ TheEnergy(ElectricityLicensing)Regulations,2012

o RenewableEnergyregulations§ TheEnergy(SolarPhotovoltaicSystems)Regulations,2012

§ DesignationofEnergyUsersGazettment

§ TheEnergy(EnergyManagement)Regulations,2012

§ TheEnergy(SolarWaterHeating)Regulations,2012

o PetroleumRegulations

§ TheEnergy(GasoholBlending)Regulations,2010§ TheEnergy(PetroleumRegulationLevy)Regulations,2008(June)-Ln91

§ ThePetroleum(Amendment-No2)Rules,2003-Ln197

§ ThePetroleum(Amendment)Rules,2002-Ln31

§ ThePetroleum(Amendment)Rules,2000-Ln64

§ TheEnergy (PetroleumRegulationLevy) (Amendment)Regulations,2008 (August) –

Ln

§ TheEnergy(PetroleumPricing)Regulations,2010

§ TheEnergy(LiquefiedPetroleumGas)Regulations,2009

§ The Energy (Importation Of Petroleum Products) (Quota Allocation) Regulations,

2010

§ TheEnergy(MinimumOperationStock)Regulations,2008

§ TheEnergy(StrategicStock)Regulations,2008

o ProposedEnergyPolicy&Law§ TheNationalEnergyandPetroleumPolicy2015

§ TheEnergyBill2015

§ ThePetroleum(Exploration,DevelopmentandProduction)Bill,2015

26http://www.erc.go.ke/

12

§ ModelProductionSharingContract

§ Energy(LocalContent)Regulations,2014

§ Petroleum Exploration, Development and Production (Local Content) Regulations,

2014

• Governmentdrivenstrategiesandplans:

o KenyaVision2030o Kenya’s5000MWPowerPlan(2013-2016)

o Kenya’sLastMileConnectivityProject(2015-2017)

o LeastCostPowerDevelopmentPlan(2013-2033)

o Scaling-upRenewableEnergyProgramme(SREP)–InvestmentPlanforKenya

o RuralElectrificationMasterPlan

o KenyaNationalClimateChangeResponseStrategy

o National Electrification ProgramProspectus [herein referred to as Rural Electrification

Authority(REA)Prospectus]developedbyREAwithsupportfromNorwegianAgencyfor

DevelopmentCooperation(NORAD)July2014.

• PrivateSectorStrategies:

o KenyaNationalDomesticBiogasProgramme(KEDBIP)

o KenyaCountryActionPlan–Cookstoveso LightingAfricaProgramme

1.2.3 EnergyResources-DemandandSupply

Themain resourcesof energy inKenyaare renewableenergy and fossil fuels. The country is highly

dependent on biomass energy, which provides 68% of the total energy supply. Fossil fuels and

electricity provide 22% and 9% respectively while other sources provide 1% of the overall energy

requirements. Petroleum is imported in both crude and refined forms and accounts for 25%of the

nationalimportbill(KNBS,2011).

Acceleratingthepaceofelectrificationisinlinewiththegovernment’stargetof70%electrificationby

201727thatwillcontributetoeliminatingextremepovertyandachievingsharedprosperity.

1.2.4 ThePowerSector

Kenya’spowerindustrygenerationandtransmissionsystemplanningisundertakenonthebasisofa

20yearrollingLeastCostPowerDevelopmentPlan(LCPDP)updatedeverytwoyears.Accordingtothe

Updated LCPDP 2013-2033, the load forecast based on the Model for Analysis of Energy Demand

(MAED) excel worksheets indicates the peak demand is estimates as shown in Annex 8. From the

MAED analysis, the peak demand in 2030 will grow to 11,318MW in low scenario, 21,075MW in

referencescenarioand31,237MWinthehighscenario.Theenergydemandwillincreasefrom8,010

GWhin2012to17,719GWhin2018to81,352GWhin2030and118,680GWhin2033.Thecurrent

peak load isexpected togrow10 timesby theyear2030.Regionalelectricity trade is an important

componentofKenya’sstrategy,aswellaswithintheEastAfricanPowerPool(EAPP)countries.Kenya

imports84.3millionkWhofpowerandexports39millionkWhtoEAPPcountries,whichconstitutes

27http://www.kplc.co.ke/img/full/2nPEsH9Dge4K_Launch%20of%20the%20Last%20mile%20connectivity%20Project.

13

1.1% of Kenya’s net generation28. Efforts are underway to enhance power trade in the region and

KenyaiswellplacedtoprovideawheelingframeworktootherEAPPcountries29.

Demand forelectricityhas shownanupward trendsince2004due toacceleratedeconomicgrowth

andplannedenergy intensiveVision2030 flagshipprojects (Annex7). Peakdemand increased from

899MWinFinancialYear(FY)2004/05to1,468MWinFY2013/14reaching1,512MWbyDecember

2014,while thenumberof electricity consumersmore than trebled from735,144 in FY 2004/05 to

2,757,983by June201430.Householdelectricityaccess isabout35%

31with51%ofurbanand5%of

ruralhouseholdsconnected to thegrid32.Per capitaelectricity consumptionwas155kWh

33 in2010

and2011.Thisisincomparisontoanaverageofover1,500kWh/capita34peryearforAfricanUpper

MiddleIncomescountries.

As of November 2014, the total installed electricity generation capacity in Kenya stood at

2,294.82MW. The generation mix includes hydropower (821 MW), geothermal (598MW),

cogeneration(26MW),wind(25.5MW)andfossilfuelbasedelectricity(827MW)35.

As one of the largest unsubsidized markets for solar pv systems in the world, Kenya represents a

promising model for off-grid electrification based on private purchases of clean decentralized

photovoltaictechnologies.Kenyahasalarge-scalemarket-drivenpenetrationofsmallPVsystemswith

capacity of 12 – 50watts power (Wp) consisting of low cost amorphous siliconmodules and both

mono- andpolycrystalline siliconmodules. Itwas estimated that by the endof 2014,more than6

MW36 of solar PV System capacity was installed in residential and commercial sectors through the

private sector initiative. By the year 2020, it is projected that the installed capacity of solar

photovoltaicsystemswillreach100MWegenerating220GWhannually.Theoff-gridanddecentralized

electricitymarketinKenyaisestimatedtocompriseabout6.7Millionhouseholds37.Supplycomprises

microandPicosystems,mini-grids,andstand-alonesystems–withsolar,windandhydrobeingthe

mainresourcesinuse.Intheoff-gridsegment,stand-alonesolarPVsystemsarethemostwidelyused

technology,withwellover200,000systemsinstalled38andsalesestimatedat20,000systemsperyear.

1.2.5 TheProcessHeatSector

Process heating is vital to nearly allmanufacturing (industrial) processes, supplying heat needed to

producebasicmaterialsandcommodities.Industriesrequiringthermalenergyfortheirprocessesare

alsoswitchingtobiomassduetotheincreasingcostoffueloile.g.foodprocessing.Theteaindustryis

oneof the largest consumers of fuelwood. There areover 90 tea factories in Kenya consuming an

28http://www.erc.go.ke/images/docs/National_Energy_Petroleum_Policy_August_2015.pdf

29KenyaNationalBureauofStatistics,EconomicSurveyReport,2014


31NationalEnergyandPetroleumPolicy-FinalDraft–June2015(page68)

32RuralEnergyMasterPlan

33http://data.worldbank.org/indicator/EG.USE.ELEC.KH.PC

34Botswana1600kWh/cap;SouthAfrica4604kWh/Cap

35ERCwebsite(erc.go.ke/Home/Electricity)

36 NationalEnergyandPetroleumPolicy-FinalDraft–June2015 37http://www.solarwirtschaft.de/fileadmin/media/pdf/intersolar2013/4-Muchunku-Solar-P-Market-Kenya.pdf

38StockTakingandGapanalysisreport,2013

14

averageof10,900m3ofwoodfuelperyear;about550,000tonnesoffuelwoodperyear.Someofthe

industriesareusingbriquettesasasourceoffuel.Thesecondhighestconsumerofwoodfuelarethe

cottage industrieswhich include brickmaking, tobacco curing, fish smoking, jaggaries and bakeries.

MostofthebiomassinKenyaoriginatesfromforestedandnon-forestedlands(cropandgrasslands).

Over 80% of Kenyans rely on the traditional use of biomass as the primary source of energy for

cookingandheating–withfirewoodcontributing68.7%andcharcoal13.3%39.About87%oftherural

populationusesfirewoodforcookingand82%oftheurbanpopulationusescharcoalforcooking40.

Woody Biomass is the most important contributor to renewable energies, though biomass is only

renewable if its sustainable production is ensured. Unsustainable logging to produce wood fuel

(charcoal in particular) is a primary cause of deforestation in the country alongside other negative

effectssuchasdegradationoflandanddestructionofmajorwatercatchmentareasandcarbonsinks.

Waste energy recovery from used geothermal steam is a cheaper source of process heat. GDC

launcheditsfirstDirectSteamUsePilotProjectatMenengaiinAugust2015.Thisisademonstration

project of alternative uses of geothermal includingmilk pasteurization, greenhouse heating, drying,

andaquaculture.

1.2.6 EnergyEfficiency

The government is addressing various energy efficiency in various ways which include drafting of

energy regulations and implementationofprogrammesandprojectsatan institutional levelandin

cooperation with several Development Partners. Enabling reforms in place include; The Energy

(EnergyManagement)Regulations,2012thatrequireregularenergyauditsbylarge-scaleenergyusers

andTheEnergy(SolarWaterHeating)Regulations,2012,thatrequireregularenergyauditsbylarge-

scale energy users and those that require installation of solar water heaters by water users using

greaterthan100litresofhotwaterperday.Theimplementationofenergyefficiencyregulationsthat

weredraftedin2012willstartin2017.

Accordingto5000+MWPowertotransformKenya,2013-2017,Electricitysectorlosses–Distribution

andtransmissionlossesintheelectricitysectorcostthecountryoverUS$17millionperyear41.Thisis

a priority area for Kenya Power and the Kenya Electricity Transmission Co. Ltd (KETRACO) and

attentionisbeingaccordedtoreducebothtransmissionanddistributionlosses.

39TheGlobalLPGPartnership(GLPGP)-KenyaMarketAssessment,2013

40MinistryofEnvironment,WaterandNaturalResources:AnalysisofDemandandSupplyofWoodProducts inKenya July

2013 415000+MWPowertotransformKenya

15

2 PARTI–VISIONANDTARGETSTHROUGH2030

2.1 KENYA’SOVERALLVISIONFORSE4ALL

The growth projected in Kenya’s Vision 2030 implies an increased energy demand. Much of this

increasedenergydemandwillbe intheformofelectricity. In linewiththis,Kenyaenvisionsa100%

access toaffordablequalityEnergy forallKenyans.Theseambitionsare incorporated intoa revised

visionandmissionintheDraftNationalEnergypolicy(2015).

• Vision:AffordableQualityEnergyforAllKenyan,

• Mission: To Facilitate Provision of Clean, Sustainable, Affordable, Competitive, Reliable and

SecureEnergyServicesatLeastCostwhileProtectingtheEnvironment.

AnotherkeyconsiderationisthenewdevolvedgovernancesysteminKenya’snewConstitution(2010)

that has resulted into demarcation of the country into 47 Counties. This change has significantly

alteredtheplanningprocessestomeetthedevelopmentobjectives.

Part 2 of the Fourth Scheduleof theConstitutionprovides that counties are responsible for county

planning and development including electricity and gas reticulation and energy regulation and

thereforeareakeystakeholderintheimplementationandachievementofSE4ALLtargets.

As requiredunderSE4ALL InitiativeKenyahassetquantitative targets foreachof thethreegoalsof

theinitiativedepictedinTable4below.

Table4:KenyaSE4ALLTargetsuntil2030undereachSE4ALLgoal

Universalaccesstomodernenergy

services

Doublingglobalrateof

improvementofenergy

efficiency

Doublingshareofrenewable

energyinglobalenergymix

Percentageof

populationwith

electricity

access

Percentageof

populationwith

accesstomodern

cookingsolutions

Rateofimprovementin

energyintensity

Renewableenergysharein

TotalFinalEnergy

Consumption

Power Heat

100%42 100% -2.785%43/year 80% 80%

Thebaselineyearforelectricityaccess44is2012.Inthebaselineyear,only23%

45ofthepopulationwas

connectedtoelectricitysupply.Kenyaaimstoachieve100%electricityaccessby2022;aheadofthe

targetsetinVision2030.

Over 80% of Kenyans rely on the traditional use of biomass as the primary source of energy for

cookingandheating–withfirewoodcontributing68.7%andcharcoal13.3%46.About87%oftherural

42Projectedtobereachedby2022

43Theenergyintensityisexpressedinnegativeasitsimprovementisareductionontheenergyintensity

44ForthepurposeoftheAA,thedefinitionofelectricityaccessisconnections(orequivalentwhendealingwithSolarHome

Systems(SHS),distributedpowerornon-meteredmini-grids)consistentwiththeGlobalTrackingFramework(GTF)andwith

themulti-tierapproachunderGTF 45KenyaFactsandFigures2014,KenyaNationalBureauofStatistics

46TheGlobalLPGPartnership(GLPGP)-KenyaMarketAssessment,2013

16

populationuses firewood for cookingand82%of theurbanpopulationuses charcoal for cooking47.

Accesstomoderncookingin2012wasestimatedat18%48andthetargetby2030is100%.

Therenewableenergyshareinthemix(powerandheat)targets80%by2030,whichwillbeprojected

from65%and43%forpowerandheatrespectively.

2.2 INTEGRATIONOFACTIONAGENDAINTOMTPPROCESS

TheMediumTermPlan(MTP)isaninstrumentofVision2030thatoutlinesthepolicies,programmes

andprojectsthattheGovernmentintendstoimplementduringthefive-yearMTPcycle.TheAA/IPwill

beincorporatedintotheMTPprocessaspriorityactionsandinvestmentopportunitiesthatarepartof

theoperationalizationofafullySE4AllattunedMTPcycle.

SE4ALLtargetsaresupportedbypriorityactionsandinvestmentopportunitiesthatfocusontheshort-

termortransitionalperiod,asadditionalactionsandrelatedinvestmentprospectuswillbeaddedas

part of the operationalization of MTP 3 and beyond. As Kenya integrates SE4All into its national

planning,thetrajectorytowardsthecountry’sSE4AllGoalsisinformedbythefollowingphases:

• Transition (2015 – 2017). During this period, current MTP2, the country continues with its

currentstrategiesandstartsanationaldialoguetowardtheadaptation,updateandalignment

of the existing interventions under the country’s SE4ALL agenda. During this period, all new

strategiesandinterventionswillhavetobeconsistentwithKenya’sSE4AllAA.

• PhaseI(2018–2022).SE4ALLbecomethekeyenergysectorreferencefortheMTP3planning

process. In thiscontext, theAAwillbe reassessedby itsprogressandadditional interventions

andIP(s)shouldbeincorporatedasneeded.

• PhaseII(2023–2027).TheAAandtheMTP3willbereassessedbyitsprogressandadditional


• PhaseIII(2027–2030).TheAAandtheMTP4willbereassessedbyitsprogressandadditional


2.3 ENERGYSECTORTRAJECTORY

Energy sector trajectory is based on population average annual intercensal of 2.5 as per the 2009

Census report and economic growth rate of 9% (reference scenario) from 2015, table 4 based on

KIPPRA Kenya economic report estimates. Kenya’s population is projected to reach 65.7million by

2030.ThegrowthprojectedinKenya’sVision2030entailsrapidlyincreasedenergydemand.Muchof

thisincreasedenergydemandwillbeintheformofelectricity,oneofthedriversofeconomicgrowth.

Kenyainitsloadforecastinghasassumedaneconomicgrowthrateofmorethan10%49peryearinthe

period2017 to2024.Assumptions andhypothesis used for theprojections4.6.1 a) Energydemand

forecastas inthepreviousLCPDP,threedemandforecastsscenariosareconsidered, in linewiththe

GDPgrowth rateprojections, table5. Thehigh scenarioassumes theVision2030GDPgrowth rate

47MinistryofEnvironment,WaterandNaturalResources:AnalysisofDemandandSupplyofWoodProducts inKenya July

2013

48EstimatebasedonThe2009NationalPopulationandHousingcensusreport

49 Vision 2030, economic pillar aims to improve the prosperity of all Kenyans through an economic development programme, covering all the regions of Kenya, and aiming to achieve an average Gross Domestic Product (GDP) growth rate of 10% per annum beginning in 2012.

17

projections.Thisscenarioassumescompleteimplementationoftheflagshipprojectswhileinthelow

andmediumscenariosonlypartoftheprojectswillbeimplemented.

Table5:GDPgrowthscenarios

Year Lowscenario ReferenceScenario HighScenario

2010 4.50% 4.50% 4.50%

2011 5.20% 5.40% 6.50%

2012 5.90% 6.30% 7.80%

2013 6.60% 7.20% 8.90%

2014 7.30% 8.10% 9.40%

2015onwards 8.00% 9.00% 10.00

Source:The2010KIPPRAKenyaEconomicReportestimates

In2013,theaccesstoelectricityandimprovedcookstoveswas26.3%50and36.1%

51respectively.The

projectedaccesstoelectricityandmoderncookingsolutionsin2030willbe100%.

The contributionof renewableenergy inpowergenerationwas62.2% in2013of the total installed

capacity of 1,765 MW52and this is projected to be 80% by 2030

53.The peak load forecast and the

energydemandforecastarepresentedinFigure4and5respectively.

50 Kenya power 2012/2013 annual report 51 Kenya Country Action Plan (CAP), 2013 52Kenya power 2012/2013 annual report 53SE4All target

18

The

referencecaserangesfrom1370MWin2012to3034MWin2018to14446MWin2030and21,075

MWin2033whiletheenergydemandincreasesfrom8010GWhin2012to17,719GWhin2018to

81,352GWhin2030and118,680GWhin203354.

BiomassfuelsarebyfarthelargestsourceofprimaryenergyinKenyawithwood-fuel(firewoodand

charcoalandagriculturalresidue)accountingfor69%ofthetotalprimaryenergyconsumption55.Wood

fuelsupplydoesnotmatchdemand inmanypartsof thecountry: theresourcesarebeingdepleted

faster than they are replenished. The wood fuel shortage is further compounded by widespread

inefficientmethodsofproductionanduseandlackofstandardsaswellasunclearnationaltargetsfor

sustainableuse.5%of thepopulationuseLPGmainly forcooking,ofwhich90% is inurbanareas56.

Hundred percent of the LPG is imported. The demand for LPG in 2010 was 87.8 thousand tonnes

comparedtothedemandof64.6thousandsin200657.DemandforLPGisexpectedtogrowto18%of

thepopulationby2022asaresultoflowcostofLPGespeciallywhentheimporthandlingandstorage

facilityisonboard.

The GoK plans to review and update biomass energy development plans, update biomass energy

databases and expand improved stoves and charcoal kiln programmes, to eliminate the fuel-wood

deficit.

Theseactionsaimtoincreasetherateofadoptionofimprovedcookstovesfrom37.2%58currentlyto

57.7%59by2030whilethetargetforcleancookingfuels in2030is42.3%.Thegovernmenttargetsto

54 Updated LCPDP 2013-2033 (March 2013) 55 The Draft National Energy Policy, 2015 56 Stock taking and gap analysis report , 2013 57 The Global LPG Partnership (GLPGP) Kenya Market Assessment, 2013 58 Kenya Country Action Plan , 2013 59 Kenya SE4All Action Agenda

Figure 5: Peak Load Forecast 2012-2033 Figure 4: Energy Demand Forecast 2012- 2033

19

make Kenya kerosene free by 2022 by availing alternativemodern energy services60. Plans are also

underwaytoreducetotalelectricitylossesinthegridfrom17.3%in2012to13.5%by202061.Related

tothisistheschemetoachieve100%energyefficientlightingsystemsby2020andtoswitchto100%

energyefficienttransformersby203062.

2.4 THEMETHODOLOGICALAPPROACHINSUPPORTOFKENYA’SSE4ALLGOALS

Targetsare supportedbypriorityactionsand investmentopportunities thatwill focuson theshort-

term, or transitional and transformation periods. Additional actions and related investment

prospectuseswillbeaddedaspartoftheoperationalizationofafullySE4ALLcompatibleMoEPPlan.

2.4.1 BaselineandQuantitativeProjectionsonAccess

Themethodologicalapproachtoestimatingbaselineandprogressiononaccessassumes:

2.4.1.1 Electricity

• BaselineforAccesstoElectricity

o Thebaseline year forelectricity access is 2012.Basedon theKenyaNationalBureauofStatistics (KNBS) the total populationwas 40.7million, representing about 8.14million

households (at the national average of five people per household. Consumption per

capitaforthebaselineyearwas157.60kWh63withaccesslevelat23%,whichrepresents

1.97millionhouseholds.

o Population Growth. Based on 2012 population compounded annually by the average

annualintercensalgrowthof2.564theprojectedpopulationwillbeabout55.1millionin

2022.

• ProgressionforAccesstoElectricity

o Progression time Intervals. In 2015, the access to electricity 38.9%65 of the population,

whichtranslatesto18.2millionpeopleor3.64millionhouseholds.Inaddition,thereare

indeterminatenumberofhouseholds,institutionsandindustriesthatareservedbydiesel

engines,mini-gridsandsolarhomesystemsthatarenotcounted. In thenext fiveyears

startingin2016,thegovernmenttargetsaconnectivityrateof1.0millioncustomers66per

year67.Theplannedongridconnectivity rate togetherwith theoffgridalternativeswill

enableachievementof100%accesstoelectricityintheMTP3by2022asshowninTable

6.

60 The Draft National Energy Policy,2015 61StockTakingGapAnalysis,2013

62StockTakingGapAnalysis,2013

63Basedontotalpowergenerationasreportedbythe2013KNBSStatisticalAbstract

64 Reference to 2009 census 65 Kenya Power report 2015 66KPLChas35,000distributiontransformersspreadacrossthecountry.Withina600meterradiusfromthesetransformers,

andthecompanyhasapotentialtoconnect472,002householdscorrespondingtoapproximately1.2millioncustomers.

67KenyaLastMileConnectivityProgramme

20

o Beyond2022.ConsistencywiththeVision2030,theMTPprocesswillensurethatthe

paceofnewconnectionsmeetthedemandtomaintainuniversalaccessthrough2030

andbeyond.

Table6:Ongridandoffgridconnectivityprogression68

Year 2012 2017 2022

TotalConnectivityoftheHHsin% 23.6 67.8 100

Source:KenyaPowerannualreport,2014

o Kenyawilltargettohaveminimumlevelsofaccesstoelectricityattier2by2022.The

percentageaccesslevelsofelectricityareindicatedintable7.

Table7:Levelsofaccesstoelectricityby2022

LevelselectricityaccessPercentageofaccess

2022 2027 2030

Tier1 20 15 10

Tier2 40 35 30

Tier3 25 30 35

Tier4 10 12.5 15

Tier5 5 7.5 10

Total 100 100 100

Source:Compilationfrom2015Draftnationalenergyandpetroleumpolicy

2.4.1.2 Accesstomoderncookingsolutions

The efforts to provide universal access to modern cooking solutions will include at least three focal points:

improvedcookstovesandcleanfuels,whichreferstouseofnon-solidfuelsforcooking(electricity, liquid

andgaseousfuels).Modernenergyinputsforthermalapplicationsincludeelectricity,LPG,biogasand

solarthermal.

IncreasingAccesstomoderncookingsolutions

• BaselineforAccesstoimprovedCookstoves

o Thebaselineyearforaccesstoimprovedcookstovesis2013atthelevelof3.2million

households69. The Kenya Country Action Plan target is 5million Kenyan households

and institutions using improved cookstoves for cooking and heating applications by

2020.

• Progressionforaccessingmoderncookingsolutions

o Progression time Intervals.Consistentwith theotheraccess indicator,progression is

presentedonfive-yearintervalsoftheMTPcycle.Theprogression,whilediscretional,

has considered and is consistent with the progression resulted from analysing the

KenyaCountryActionPlan(CAP)2013andthedraftbioenergystrategy2015.

68KenyaPowerannualreport2014

69 Kenya Country Action Plan 2013

21

o Assuming equal achievement per year the KCAP requires adoption of 270,542

cookstovesperyeartogetto5,000,000cookstovesin2020.Ifthiseffortissustained

atsamelevel,57.7%householdswouldbeusing improvedstoves in2030.Asperthe

DraftNationalEnergyPolicy2015theuseofLPGtargetbyhouseholdsby2020is18%,

this is an increase of 2.16% per year. If this is sustained, then 35.3% of Kenyan’s

householdswill be using LPG by 2030. Use of electricity, bioethanol and biogas for

cooking is projected to reach 7.6% by 2030. Table 8 shows clean cooking fuels

progressionforhouseholdsuntil2030.

22

Table8:Cleancookingfuelsprogressionforhouseholdsuntil2030

Source:Compilationfrom2015Draftnationalenergyandpetroleumpolicy

2.4.2 The Methodological Approach to the Baseline and Quantitative Projections on Energy

Efficiency

TheSE4AllGlobalInitiativedefines,table9,energyintensityastheglobaleconomicoutputdividedby

total energy consumed divided by the GDP. The SE4All guideline of doubling the rate of energy

efficiencyisbasedonenergyintensity.Ataneconomy-widelevel,itisachallengetodefineanenergy

intensitytarget(i.e.therelationshipbetweenenergyandGDP)withoutmuchmoredetailedsectoral

growth projections (for example the growth rates of energy intensive industries vs. service sector

growth).

Table9:WorldBankEnergyIntensityDefinition

IndicatorName Energyintensitylevelofprimaryenergy(MJ/$2005PPP)

IndicatorCode 6.1_PRIMARY.ENERGY.INTENSITY

Definition Energyintensitylevelofprimaryenergy(MJ/$2005PPP):Aratiobetweenenergy

supplyandgrossdomesticproductmeasuredatpurchasingpowerparity.Energy

intensity is an indication of howmuch energy is used to produce one unit of

economicoutput.Lowerratio indicatesthat lessenergy isusedtoproduceone

unitofoutput.

Statistical

Concept and

Methodology

Indicatorisobtainedbydividingtotalprimaryenergysupplyovergrossdomestic

productmeasuredinconstant2005USdollarsatpurchasingpowerparity

UnitofMeasure MJ/$2005orTOE/$2005PPP

Comments Energy intensity level is only an imperfect proxy to energy efficiency indicator

and it can be affected by a number of factors not necessarily linked to pure

efficiencysuchasclimate.

Year 2013 2017 2020 2022 2027 2030

LPG(%) 8.6 13.6 15.0 18.6 25.6 35.3

Biogas(%) 0.1 0.2 0.3 0.4 0.6 0.8

Bioethanol(%) 0.0 0.0 1.0 1.5 3.0 4.5

Electricity(%) 0.6 1.0 1.2 1.5 2.0 2.3

HHsaccesstocleanfuels-non-solids(%) 9.3 14.8 17.5 22.0 31.2 42.9

Improvedcookstoves-Solidfuels(%) 37.2 42.9 47.7 52.7 57.6 57.7

Totalaccesstomoderncookingservices(%) 46.5 57.7 65.2 96.7 88.8 100.0

Accesstouncleancookingservices(%) 53.5 42.3 34.8 25.3 11.2 0.0

Totalaccesstocooking(%) 100.0 100.0 100.0 100.0 100.0 100.0

23

Kenya’s historical progression of energy intensity presents a trajectory that has remained almost

constantwithinarange,asillustratedbyTable10.

Table10:HistoricalProgressionofKenya'sEnergyIntensity70

Energyintensity 2000 2002 2004 2006 2008 2010 2012

InTOE/$2005PPP 0.28 0.28 0.28 0.27 0.26 0.27 0.2571

InMJ/$2005PPP 14.33 14.26 14.25 13.79 13.40 13.65 N/A

Table11:KenyaTargetsforEI

Indicator Rateofenergyintensity(TOE/$2005PPP)

Baselineyear2012 0.25

Targetyear2030 0.12572

Goalby2030 -2.785%/year

ThefocusforKenyaisto:

• Atleastdoubletheefficiencyofbiomassenergyuse

• Extendcurrentratesofelectricalefficiencyimprovementto2030

Within the cooking sector, it is possible to identify a more specific energy efficiency target.

Performancetestscarriedoncookstovesforsolidbiomassandliquidfuels(keroseneandbioethanol)

cookstovesbyuniversityofNairobi-Chemistrydepartment.Theprojectwassupport fromMoEPand

UNDP under energy access programme. The results indicated that Charcoal stoves have higher

thermalefficienciesthanthoseoffirewood(17-37versus26-47)whiletheLiquidfuels(keroseneand

ethanol) stoves achievedmuch higher thermal efficiencies (30 -53%)73. In same report, the thermal

efficiency of institutional cookstove ranged between 43-60%. In these scenarios, based on a

population growth rate of 2.7% per year, and assuming that each household on average will

experiencea2.7%peryeargrowth incookingdemand(moreelaboratedmeals,morecookedmeals

perday,etc.),thetotalusefulenergydemandforcookingheatgrowsbyover250%.Thetestsresults

wereusedtodevelopcookstovestandard.

Undertheprojectedenergysavings inscenariosdevelopedfortheActionAgenda,theactualenergy

consumed for cookinggrowsbyonly15%.Thismeans that theefficiencyof cookingwillhavemore

than doubled by 2030 relative to 2009. Based on these scenarios, Kenya is adopting a target of

doublingtherateofenergyefficiencyinthecookstovessectorby2030.

In terms of the efficiency of electricity use, there are ambitious programmes underway, including

substantialinvestmentforgrid-lossreduction,aswellasanadditionalprogrammeonefficientlighting.

The250energyauditsundertakenonbehalfoftheMoEPupto2014indicatesasavingspotentialof

KShs7.5billionand20MWequivalent.Assistance fromDANIDAtoCentre forEnergyEfficiencyand

70WorldBankandInternationalEnergyAgency(IEAStatistics©OECD/IEA,http://www.iea.org/stats/index.asp)

71ThebaselineispositivebecausethisistheactualEnergyIntensitynotaratioofreduction.

72This istheend levelofEnergyIntensityandthegoal istoreducethebaselinerate inhalfmeaningto0.125.Thegoalby

2030is-2.785% 73September2014,Documentationandevaluationoftheefficacyofhouseholdinstitutionalandenergystovesfor

improvedlivelihoodandpovertyreductionofKenyancommunities

24

Conservation(CEEC)alsosawthecompletionofa further150energyaudits translatingto indicative

savingsofKShs8.0billionand25MWequivalent.

2.4.3 TheMethodologicalApproach to theBaseline andQuantitativeProjectionsonRenewable

Energy

Processheat

Process heating is vital to nearly allmanufacturing (industrial) processes, supplying heat needed toproducebasicmaterialsandcommodities.Industriesrequiringthermalenergyfortheirprocessesarealsoswitchingtobiomassduetotheincreasingcostoffueloile.g.foodprocessing.Thesecondhighestconsumer of wood fuel are the cottage industries which include brickmaking, tobacco curing, fishsmoking, jaggaries and bakeries. Most of the biomass in Kenya originates from forested and non-forested lands (crop and grasslands). The plan is to enforce sustainable management practices toensurethatthelevelofcarbonstocksdonotsystematicallydecreaseovertimethroughthefollowingmeasures;

1. Thewoodybiomassoriginatesfromlandareasthatareforestswhere:

a. Thelandarearemainsaforest;

b. Sustainablemanagementpracticesareundertakenonthese landareas toensure, in

particular,thatthelevelofcarbonstocksontheselandareasdoesnotsystematically

decreaseovertime(carbonstocksmaytemporarilydecreaseduetoharvesting);

2. The biomass is woody biomass and originates from non-forest areas (e.g. croplands,

grasslands)where:

a. Thelandarearemainscroplandand/orgrasslandsorisrevertedtoforest;

b. Sustainablemanagementpractices areundertakenon these land areas to ensure in

particularthatthelevelofcarbonstocksontheselandareasdoesnotsystematically

decreaseovertime(carbonstocksmaytemporarilydecreaseduetoharvesting);

c. National or county forestry, agriculture and nature conservation regulations to be

compiled.

PowerGeneration

Kenyainstalledgenerationcapacityisprojectedtoincreasefrom1,645MWin2012toabout14,67674

MWby2030basingonthereferencescenario.Thestrategyistodiversifythebase-loadfromhydroto

othersourcesofenergymainlygeothermal.Theexpectedpowersupplyfromvarioussourceswillby

2030 be composed of 80.11% renewable energy: geothermal5,450.00MW (37.13) hydro 3,000MW

(20.44%), diesel 500MW (3.40%), natural gas 1,500MW (10.22%), Co-generation/Gasification 600MW(4.08%)SolarPV1,200.00MW(08.17%),Biogas10MW(0.07),wind,1,500.00MW(10.22%)coal

2,420MW(16.49%)andgas496MW(3.38%).TheREmixisexpectedtobeat80%by2030asshownin

Table12.

74 March 2013 Least Cost power development (2013-2033)

25

Table12:KenyaTargetsforREmixinpowergeneration75

Sources of Electric

PowerGeneration

Capacity

2012

Capacity

2014

Capacity

2017

Capacity

2022

Capacity

2027

Capacity

2030

MW % MW % MW % MW % MW % MW %

RenewableEnergy

Hydro 816.30 46.21 821.00 37.78 900 27.33 1,500 24.80 2,500 23.35 3,000.0 20.44

Geothermal 250.40 14.17 593.50 37.78 800 24.30 2,000 33.07 4,000 37.36 5,450.0 37.13

Wind 5.90 0.33 25.00 1.15 500 15.19 900 14.88 1,200 11.21 1,500.0 10.22

Cogeneration/g

asification

26.00 1.47 38.00 1.75 50.0 1.52 100 1.65 300 2.80 600.0 4.08

Biogas 0.00 0.00 0.155 0.01 2.0 0.06 5.0 0.06 6.00 0.06 10.00 0.07

SolarPV 0.50 0.03 1.68 0.78 40.00 1.22 300.0 4.96 700 6.54 1,200.0 8.17

Total 1,099.10 62.21 1478.18 68.01 2,292 69.62 4805 79.45 8706 81.32 11760.0 80.11

Non-Renewable 667.40 37.79 695.3 31.99 1000 30.38 1243 20.55 2,000 18.68 2916.0 19.89

Grandtotal 1,766.50 100.0 2,173.48 31.99 3,292 100 6,048 100 10,706 100 14,676.0

100.

Source:March2013LCPD(2013-2033)

75Computation based on updated LCPDP 2013-2033, March, 2013

26

a) ProgressioninPowerGeneration

IntheupdatedLCPDP,2013,thepeakdemand isprojectedtogrow10times in2030toreachthe

peakdemand11,318MWinlowscenario,21,075MWinreferencescenarioand31,237MWinthe

highscenario.Theenergydemandwillincreasefrom8,010GWhin2012to17,719GWhin2018to

81,352GWhby2030and118,680GWhin2033.Theseprojectionsarebasedonanarrayofplanned

infrastructural, mining andmanufacturing projects including the standard gauge railway line, the

establishmentofasteelsmeltingplantinMeru,KonzaTechnocityandseveralothermajorenergy

intensiveundertakings.

Figure6:Projectedgenerationmixinyear2030

Itisexpectedthatthedevelopmentofresourceslikegeothermal,wind,solar,cogenerationwillhave

an impacton thecapacityprojectionsaswellas themixof resourcescontributing towardspower

generationtothegridby2030.

2.5 SECTORAL-ENERGYNEXUS

Energy intersects with several other socially important development themes. Attempts indevelopingspecificquantitativetargetshavebeendonewhileinsomecasesqualitativetargetsarebeingusedowingtothelackonbaselinedata.Table13illustratestheissuesandtargets.

Table13:Indicativegoalsfornexusissues

Nexus Issue Target

Health Indoor air quality from cookingpredominantly affects women andchildren.Overlappingwithothernexusissues, inadequate access to moderncooking solutions can affect foodqualityandnutrition.Lackofelectricity(on or off-grid systems) for maternalhealth care services has a negativeeffect on infant mortality andchildcare. Vaccine refrigeration,lighting, ICT, running medicalequipmentforprocedures,sterilizationand even staff amenities in healthcentresareservicethatrequireenergy.

AllhouseholdstobeatTier376oraboveairqualitystandardsby2030definedbyISOstandardsinlinewithWHOguidelines.ThemajorityofImprovedCookstoves(ICS)usedinKenyatodayoperateatTier1level.Forthoseusingcookstovesthatdonotmeetthisstandard,implementothermethodssuchasventilationforimprovingairquality.

Electrification of all Government health centres, by2030-100%ofhealthcentresshouldreceiveelectricity(on or off-grid systems). Sustainability of theseinitiativesneedstobefactoredintoimplementationtoensure sufficient, reliable supply of energy forhousehold,communalandproductiveuse.

76 These tier level classifications include not just energy criteria, but also health criteria.

27

Nexus Issue Target

Water -Coordination of water planning isrequired because delivery of water,especially in semi-arid areas, relies onenergy for pumping water for bothirrigation and drinking – withsignificant time, health and labourimpactsforthosewithoutit.

-Vulnerability of hydro supplies toclimatechangeimpacts

Hydro plant fully integrated into Water resourcesManagement Authority (WRMA) plans by 2020 fordomesticuse,energy,agriculture,andindustry.Multi-useschemesroutinelyconsideredinprojectplanning.

By 2020 at the latest, all hydropower and multi-useschemes fully assessed for climate vulnerabilities andadaptationmeasuresidentifiedandcosted.By2030atthe latest, majority of schemes, have risk-mitigationstrategiesimplemented.

Access to clean drinking water especially by womenwho are charged with the responsibility to providewater for the family. Women spend a lot of timefetchingwater.

Food Land-usecompetition

Energyconsumptionfor

irrigation

Beyond2020,netexpansionoflanduseforforestryorother energy production will only be considered ifthereisnoconflictwithfoodsecurityobjectives.

Water irrigation is planned to increase significantly,and solar PV powered pumps should be routinelyconsidered as the way to provide energy for suchsystems. Such technologies can help improveresiliencetoclimatechange.

Gender Energy interventions are likely toimpact women and men differently.For example, access to affordablemodern energy services can reduceboth time and effort spent inreproductiveandproductivelabour.

Whilesomeofthebenefitsofaccesstomodern energy are equally applicableto both women and men, someinterventionsbringspecificbenefits towomen

Energy projects, including thosefocusingoncookstoves,donotalwaystakeagenderedperspective

Womenareparticularlytime-poorandtheassociateddrudgeryof their tasks,which has implications on health, andwell-beingofchildrenandfamilies.

The high up-front costs of access tomodern energy services may affectmore severely female-headedhouseholds,oftenover-represented inlow-incomequintiles.

-Access to water for irrigation forfarmers,especiallywomentoincreasefoodsecurityandalsofordrinking

-Energyforfoodprocessingcanleadto

Halvetheamountoftimewomeninruralareasspendcollectingfirewoodby2030.

Involve women in the selection of technologies (e.g.cookstoves) and in the selection of relevant researchtopicsinsupportoftheSE4Alltargets.

Providerelevanttrainingtowomen(e.g.,onbusinessdevelopment services, on better water managementor water storage for energy purposes, including forbiogasinstallations,improvedcookstovesetc.

Involve women as actors in the value chain formarketing the stoves and other renewable energytechnologiesasenergyentrepreneurs

Supportwomengroups to usemodern technology inagriculture to boost their come and put energy toproductive uses e.g. irrigation agriculture, processingof farm produce thus adding value, poultry keepingandprocessingofanimalfeedsonthefarm.Accesstoclean drinking water especially by women who arecharged with the responsibility to provide water forthefamily.Womenspendalotoftimefetchingwater.

-Increase access to modern energy services improveon the quality and quantity of farm produce thusincrease small farm income, given women’s role infoodsecurity.

-Gendermainstreaminginenergypoliciesandprogramstoensurethatprojectsachievegreaterlivelihoodenhancementsandcontributetowomen’s

28

labour/time saving freeing more timeforwomenandmentoengageinmoreproductiveactivities

While gender issues are interspersedall along the energy supply chain,energy projects, including thosefocusingoncookstoves,donotalwaysin reality take a gendered perspectivebecause women’s access to decisionmaking within the household andcommunity is restricted , limitingtheirability to influence processes andresource allocation on many issues,includingenergy.

economicempowermentandincreasedparticipationindecisionmaking

Climate

change

Kenya is currently facing significantthreatsfromglobalclimatechange:

- Increased variations in weatherpatterns (reduced rainfall and failedseasons);

- Habitat destruction; loss ofbiodiversity

- Resource use conflicts all impactnegativelyontheenergysector

-Enhanceuseof renewableenergies tominimize

Green House Gas (GHG) emissions and foster

alternativestoclimate-sensitiveenergyresources

(suchashydroandbiomass)

-Supportenergyefficiencymeasures

-Sustainableuseofrenewableenergyresources

Education -Pastoralists prefer learning in theevening

-Electricity penetration inpastoralistsregionsverylow

-Difficult to introduce digitised

education such as computerstudies

-difficult to carry out electricalcoursesinlearninginstitutions

-By June 2013, out of 50,000 of the fivepublic

(Trading centres, Administrative centres, health

centres, schools and water projects) facilities in

the country, about 66% were electrified. The

table below shows the status of the

electrificationofthefacilitiesasatJune2013

-By 30 June 2014, 71%of 21,222 public primary

schools in the country were connected toelectricity.

-The target is to electricity all the public

institutions by 2017 (Rural ElectrificationMaster

Plan).

29

3 PARTII–PRIORITYACTIONAREAS77

Kenyaadopted the11ActionAreas identified in theGlobalActionAgenda forachieving the three

SE4ALL objectives. These provide a framework for identifying high-impact opportunities (HIOs); a

waytoorganizemulti-stakeholderactionsacrossall relevantsectorsoftheeconomy;andtangible

entrypointsforstakeholdersinterestedintakingactioninspecificareasofinterest.

WithineachActionArea,Kenyahasidentifiedspecifichighimpactopportunitiesandforeachareaof

opportunity the related high impact initiatives (HIIs). Alongside the HIOs are also priority

programmes that relate to both enabling the environment, overcoming barriers, and catalysing

investmentopportunities.Therearealsopriorityprojectsactingaspacesetters,marketmakersand

whichcontributesignificantlytoachievementofsettargets.

Part2oftheFourthScheduleoftheConstitutionprovidesthatcountiesareresponsibleforcounty

planning and development including electricity and gas reticulation and energy regulation and

thereforeareakeystakeholderintheimplementationandachievementofSE4ALLtargets.

3.1 ENERGYACCESS

3.1.1 Electricity

3.1.1.1 StatusAsatJune2014,therewereninegenerationsubstationswithtransformationcapacityof1,846MVA

and forty-five transmission substations with a capacity of 3,181 MVA. The existing transmission

network comprises 1,434 km of 220 kV and 2,513 km of 132 kV lines, as at June 2014 and is

interconnectedwithUgandathrougha132kVdoublecircuitline.

By 31st July 2015 national customers electricity connectivity for Kenya stood at 38.9%78and the

target for2022 is100%tobeachieved throughbothgridandoff-grid solutions79. In thenext five

yearsstarting in2016, thegovernmenttargetsconnectivityrateof1millioncustomersperyear80.

Currently, there are 16 off-grid stations operated Kenya Powerwith a total capacity of 16.8MW.

ThesearelocatedinWajir,Elwak,Takaba,Mandera,Marsabit,Moyale,Habaswein,Rhamu,Lodwar,

Lokichoggio,Baragoi,Merti,Mfangano,Mpeketoni,HolaandEldas.Tenothermini-gridsareunder

constructionacrossthecountry.

Inthesolarsubsector,2014studybyM-KOPASolarandInterMediashowedthat14%oftheKenyan

population uses off-grid solar as their primary lighting and charging source. Combining this with

electricity access at 38.9%, there are approximately 47.1% of Kenyans still relying on kerosene,

firewoodandcandlesforlighting.

77Section6.3.2presentsthetimelinefortheimplementationofpriorityHIIsthrough2018

78Kenyapowerannualreport2014/2015

79Targetedhouseholdsfortheplanis1,416,000connectablecustomers(WorldBankassessmentreport2015-201780LastMileConnectivityProject

30

Outof the47 countiesnineare considered tobeoff-grid, theseareMarsabit, Turkana,Mandera,Wajir,Lamu,TanaRiver,Isiolo,Garissa,Samburu.

3.1.1.2 TrajectoryKenya’spowerindustrygenerationandtransmissionsystemplanningisundertakenonthebasisofa

20yearrollingLCPDPupdatedeverytwo years.Withthepeakdemandgrowingto11,318MWin

lowscenario,21,075MW in reference scenarioand31,237MW in thehigh scenarioby2033and

energydemandincreasingto17,719GWhin2018to81,352GWhin2030and118,680GWhin2033,

thegenerationcapacityneedsexpansiontobeintandemwiththegrowth

Candidategenerationresourcesconsideredinthesystemexpansionplanincludegeothermal,hydro,

wind, coal,oil-firedandnuclearpowerplants,withgeothermal capacityplanned to increase from

198MW(2011)to5,530MW,equivalentto26%ofthesystempeakdemandby2031.Othersources

by2031are19%fromnuclearplants,13%fromcoalplantsand9%fromimports.Windandhydro

plantswillprovide9%and5%respectivelywhilemediumspeeddiesel(MSD)andgasturbines(GTs)

-LNGplantswillprovide9%and11%ofthetotalcapacityrespectively81.

Asof30thJune2014,thedistributionsystemcomprisedof1,212kmof66kVlines,20,778kmof33

kV lines, 30,860 km of 11 kV lines and low voltage lines, primary distribution substations with

transformation capacity of 3,311MVA and distribution transformers with total capacity of 6,317

MVA.It isprojectedthatby2020,capacitiesofprimaryanddistributionsubstationswillbe11,888

MVA,190,204MVA,while the lengthsofHV linesandMV lineswillbe7,925kmand118,875km

respectively. In the year 2030 capacities of primary distribution substations and distribution

transformerswillbe37,565MVAand60,104MVA,whilelengthsofHVandMVlineswillbe25,043

kmand187,825km,respectively.

Thegovernmentalsoplanstodevelopnewtransmissionlinescomprisingofabout5,438kminthe

short termand18,173kmby203382.ThroughtheLCPDPprocessand feasibilitystudies,KETRACO

has identified priority projects for implementation totalling about 6,270 km of transmission lines

comprising2,081kmof132kV,1,278kmof220kVand2,299kmof400kVAClinesaswellas612

kmof500kVHighVoltageDirectCurrent(HVDC)linebetween2011and2017.Itisprojectedthatby

2033KETRACOwillhaveconstructedover18,000kmoftransmissionlines.

3.1.1.3 ExistingPlans/Strategies

GoK has embarked to increase connectivity per year to one million starting in the 2014/2015

financialyeartoreach100%connectivityby2022.Toachievethesetargets,thefollowingstrategies

arebeingemployed;

• RuralElectrificationMasterPlan:TheGoKisimplementinginitiativestomakeelectricitymore

accessibletothepopulationespeciallyinruralareas.Amongtheconsumersweresome382630

ruralhouseholdselectrifiedthroughtheRuralElectrificationProgrammeunderREA.Inaddition,

REAconnectedmorethan23,000publicfacilities inthelastfiveyearsconstituting89%ofthe

main public institutions that were to be electrified in REA’s first strategic plan (2008/09-

81 Updated LCPDP 2011-2031, GoK

82 Updated LCPD 2011-2031, GoK

31

2012/13).Thefocusonelectrificationofprimaryschoolsstartedin2013,asoneofthepriority

projectsbythenewgovernment,whichwaselected inMarch2013.ByJune2013,outof the

overall 21,222 primary schools in the country, 10,157 had been electrified. To complete the

electrification of all primary schools by June 2015, the Authority put in place a programme

aimedatcompletingelectrificationoftheremaining11,062primaryschools intwoyearswith

5,000primaryschoolsplannedforelectrificationinthe2013/14financialyearand6,065inthe2014/15financialyear.

• The5,000+MWProject83:A roadmap to increase the installedgenerationcapacity from1664

MW as at October 2013 by at least 5000MW to 6,762MW by 2017. Through the plan the

generationcostisprojectedtoreducefromUS¢11.30to7.41,whileindicativeend-usertariffs

areprojectedtoreducefromUS¢14.14to9forcommercial/industrialcustomersandfromUS¢

19.78to10.45fordomesticcustomers

• Scaling Up Renewable Energy Programme (SREP). The decentralized segment, mini-grids

development has been getting the most attention, especially from the Government,

developmentpartners,andprogramssuchasSREP. It isalsoanareaofgrowing interestfrom

the private sector. Private sector approaches tomini andmicro-grid development are being

developed,thoughthere isstillnoformalregulatoryframeworkforthis.DonorssuchasDfID,

workingwithGIZ, have recently introduced innovativemini-grid development financing,with

theintroductionofResultsBasedFinancing,targeting20private-sector-operatedmini-gridsand

working with locally based financial institutions. Conventional solar, wind, diesel or hybrid

plantsexist,with22mini-gridsdevelopedbyKenyaPowerandLightingCompany(KPLC),witha

reachofover20,000customers,mainly installed in remoteareas.Theprivatesectorandcivil

society have installed at least a dozen wind/solar/micro hydro/hybrid mini-grids. Isolated

solar/diesel mini-grids managed by KPLC contribute almost 1 MW, while wind mini-grids

produce550kW.EffortsareunderwaybytheMinistryofEnergyandPetroleum,workingwith

KenyaPowerandREAtoscalethisupunderhybridmini-grid initiatives.At least68newsites

areindevelopmentunderKenya’sScalingupRenewableEnergyProgramme(SREP)Investment

Plan,2011.

• LastMileConnectivityProject-TheprojectinvolvesextensionoftheLowVoltagenetwork(415

and 240 volts) around existing distribution transformers within the transformer protection

distance,currentlycapedataradiusof600Metres.TheProjectaimstoofferconnectionstoupto1,416,000connectablehouseholdsinaperiodof3years(2015-2017).

• ProvisionofStima loan:StimaLoan isaKenyaPower initiative inpartnershipwiththeFrench

Development Agency (AFD) through the Government of Kenya. It aims at connecting low-

income families that cannot afford the connection fees upfront by providing loans at 5%

administrationfee(one-offpayment)and20%upfrontpayment.Thebalanceispayableovera


32

periodof 24months. As atMay2014,more than49,000Kenyanshavebenefitted from theloanscheme84.

• Least Cost Power Development Plan (LCPDP): A long-term commitment (2013-2033) to

electrificationplanthatprovideaframeworkforinstitutional,technical,economicandfinancial

designandimplementationofspecificprograms.

• National Electrification Strategy that is expected to provide a framework for electrification,

encompassingtechnical,financial,andinstitutionalplanning.

• Distribution Expansion Plan 2014-2018. The medium term distribution expenditure plan is

projectedtocostKSHS35,067millionequivalentstoUS$433.45million.Besidesthedistribution

masterplan,KenyaPowerthroughtheirDistributionDivisionhasdevelopedstrategiesgeared

towardsabsorbingtheadditionalgenerationcapacitytotallingtoaboutKSHS5Billion.Funding

theelectrificationof informalsettlements. InformalsettlementsarearealityofKenya’surban

areas.MillionsofKenyans live in informal settlementswithunsafeelectrical installationsand

limitedaccesstolegalconnections,whilepowertheftintheinformalsettlementsresultsinhigh

commercial and technical losses for the Company. However, electrification of informal

settlementsisoftenuneconomicforpowerutilitiesasreturnsaretoolowtorecoverthecostof

investment, operations and service. The Company, therefore, has been exploring sustainable

ways to provide electricity to the settlements in partnership with the Government and

developmentpartners.Towardsthis,inFebruary2012,theCompanyobtainedagrantfromthe

InternationalDevelopmentAssociation(IDA),actingasadministratoroftheGlobalPartnership

onOutput-BasedAid (GPOBA), for electrification of informal settlements in the country. The

programme entails the Company pre-investing in the electrification of informal settlements,

afterwhichGPOBAwill reimburse theCompanyUS$75permeter connectedup toa totalof

US$5million;whiletheWorldBankwillreimburseUS$150permeterconnecteduptoatotalof

US$10million.About66,000customersareexpectedtobenefitfromthisinitiative.

• The Kenya Joint Assistance Strategy (KJAS) presents a core strategy of 17 development

partnersfor2007–12.TheKJASpartnerswillaidthegovernmentprograminseveralways85.

o Theywill continue to support implementationof substantial changes in theorganization

andstructureoftheelectricitymarket(includingagreementonamanagementcontractfor

the Kenya Power and Lighting Corporation), and institutional reforms of the ruralelectrificationprogram.

o They will finance investments to expand generation capacity (including through

geothermal and hydro); improve efficiency of power production, transmission, anddistribution;andincreaseaccesstomodernenergyservicesinruralareas.

o They will support cross-border projects, including the Kenya–Ethiopia, and the Kenya–

Tanzania–Zambia power interconnection projects. They will also help to develop the

84 http://www.kplc.co.ke/content/item/77/Stima-Loan#sthash.gjWIVC03.dpuf

85 Kenya Joint Assistance Strategy 2007-2012

33

capacity of the regulatory bodies and of the Ministry of Energy, improve energymanagementandgovernance,andpromotecross-bordercooperationintheenergysector.

o Theywillfacilitateaccesstoenvironmentallyfriendlytechnology,includingsolarandwind

power. Finally, they will support Kenya’s efforts to regularize, improve efficiencies, and

reduce the environmental impact of the charcoal industry, on which 75% of Kenyansdependfordomesticenergy.

• M-KOPAbusinessmodelsforsolar-raisingUS$20million(KSHS1.72billion)tofundexpansionof

their customer base from 50,000 homes to one million homes by 2018. M-KOPA provides

affordablesolar-poweredlightingandmobilechargingtoruralKenyansonapay-as-you-gobasis,

with payments conveniently sent via M-PESA (Kenya’s leading mobile money service). When

customers have fully paid for the value of the solar product, they own the product and cancontinuetouseitfreely.

AccordingtoInternationalFinanceCorporation2012report,theprivatesectorisvibrantinthesolar

sector,with21distributors/importers,andover1500SMEssellingsolarlanternsinKenya.Thereare

currentlywith29qualityverifiedsolarlightingproducts,from17manufacturers,currentlyonsalein

the country. The solar lanternmarket grown by more than 200% in the last 3 years with about700,000solarlanternssoldtooff-gridfamiliesinruralKenyabyendof2014.

Inlightoftheoverarchingobjectives,theseplansareambitiousenoughtomeetthechallenge,and

have targets that aim to achieve the energy access objective sooner than2030. The activationof

these plans, are not fully operationalized, and their funding, will be necessary to make them

effective.

3.1.2 CleanCooking

Whileuniversalaccesstomoderncookingservicesby2030referstobothuseofnon-solidfuelsand

improved(efficient)cookstoves,cleancookingreferstouseofnon-solidsfuelsforcooking.Hence,

According to 2009 census report over 80% of rural and 10% of urban households regularly use

firewood,whileabout7%ofruralhouseholds,andover30%ofurban,usecharcoal.Therateofuse

of biomass has outstripped the rate of supply thus rendering biomass non-renewable sources of

energy. In Kenya, use of improved (efficient) cookstoves is being taken as a stopgapmeasure as

effortsarebeingmadetotransittocleancookingfuelsandsustainablebioenergystrategiesbeing

putinplace.

3.1.2.1 Existingplans/strategiesforcleancooking• The Government has prioritized clean cooking in its climate change action plan 2013-

2017 and recognizes its impacts on climate change; therefore, it is at the forefront in

advocatingforimprovedcookingtechnologiesandalternativecleancookingfuels.

• TheKenyaCountryActionPlan(CAP)forCleanCookstovesandfuels,whichhasatarget

of5millionhouseholdsby2020.

34

3.1.3 ExistingGaps

3.1.3.1 UniversalAccess-Electricity

Themainchallenges/gaps thatKenya faces toreachSE4ALLuniversalaccess toelectricityby2030

areasfollows:

• Affordabilityofelectricity:

o Although connection fees was significantly lowered in May 2015, their cost is still a

deterrentforruralhouseholdsandthepoorespeciallyfemale-headedhouseholds.Thesame

istrueforoff-gridsolutionssuchassolarhomesystemsandmini-grids,althoughthesecan

bescaleddowntoanappropriatecostforconsumers.

o Although universal access makes sense from economic and equity perspectives, its

financial viability is often uncertain. The financial viability of electrification for those

withoutaccessusuallyrequiressubsidiestocoverpartofitscapitaland/oroperatingcosts,

asmanyunconnectedhouseholdscannotpayfullyforthecostofelectricityservice.

o The upfront cost of connection is a more serious barrier to extending access than the

monthlypaymentsforconsumption,andonly35−40%ofhouseholdinelectrifiedareasare

usuallyreadytoconnect.

• Fragmentedenergyaccessmarket:

o Mostpopulationlackingaccesstomodernenergyservicesaredispersedandnotproperly

mappedwhich isachallenge forcompaniesprovidingservices to thismarket resulting in

uncoordinated,immatureandnotwidelyknownservicestostakeholders.

• Needtodevelopminigridpolicy

o Although there are strategies and plans to address access above 1 MW, there is no

comprehensive strategy formini-grids and stand-alone systems for access below 1MW.

Suchastrategywillboostthedevelopmentofmicro-decentralizedsystemsthatmaybea

costeffectivesolutiontosmallsettlementsinremoteareasofKenya.

o Lackofregulationstoapolicyforminigrids

o Lackofnetmeteringregulations

• Infrastructure

o Primarysubstations(andBSPs)areequippedwithjustasingletransformerandeventhose

withtwoorthreetransformersareoftenloadedsuchthatnosparecapacityexiststocater

for a transformer failure. This is a particular issue for parts of the network with no

alternativemeansofsupply.

o Muchofthedistributionnetworkdoesnothaveadequatecapacitytoeffectivelymanage

thepresentdemand,

o The distribution network suffers from poor reliability and quality of supply, which is

generally due to underinvestment.Many parts of the distribution network are supplied

overextremelylong,radial33kVand11kVfeeders,withnoalternativesourceofsupply.

o Insomecases,33kVfeedersmaybehundredsofkmlong,withmanyspurs,resultingina

totallength(inextremecases)inexcessof1000kmsuppliedfromasinglesource.Afault

onsuchalongfeederwillhavewidespreadimpact,bedifficulttolocateandthereforewill

resultinalongrestorationtime.

35

o Due to excessive feeder lengths and use of undersized conductors, voltage levels on

feeders,particularlyoutsideof theurbanareasare typicallypoorandsignificantlyunder

therequiredstandard.Automaticvoltageregulators(AVRs)havebeeninstalledonfeeders

in the past, howevermany of these have failed and have subsequently been bypassed.

Excessivelylong,undersizedfeedersalsoresultinhighlosses.

o Electricitygenerationshortage:Anobstacletoruralelectrificationinmanycountrieswith

low access rates is insufficient generation capacity of the main electricity system. It is

unrealistic to expect these countries to make more than modest gains in increasing

electricityaccessbymeansofgridextensionuntilthecapacityconstraintiseased.• Costsandfinancialconsiderations:

o Lackof appropriate incentives. Thehigh costsofelectricity supply in rural areasand the

limitedcapacityofhouseholdstopayfortheservicemakeitdifficulttoattractinvestment

inruralelectrification.Todoso, it requiresasystemoftariffsandsubsidiesthatensures

sustainable cost recovery while minimizing price distortions. However, such a revenue-

generationschemeisabsent.

o Highcostsofsupplyingruralandperi-urbanhouseholds.Lowpopulationdensityandavery

highpercentageofpoorhouseholdscharacterizemostruralcommunities,aswellasmany

peri-urban areas. Demand for electricity is usually limited to residential and some

agriculturalconsumers,andmanyhouseholdsconsumelessthan30kilowatt-hours(kWh)

permonth.Thecombinationofthesefactorsresultsinhighcostsofsupplyforeachunitof

electricityconsumed.

o Financial and Operational Sustainability. Making service sustainable is one of the main

challengesinextendingaccess,bothinruralelectrificationandinlow-incomeurbanareas.

While a large portion of capital costs is usually subsidized through specially designated

funds(frequentlysupportedbydonors),morefinancialassistanceisoftenneededbecause

manyhouseholdscannotpaythefullcostofoperation.

• RuralElectrificationStrategy:

o Adequatedesignandeffective implementationofaruralelectrificationprogramrequires

technicalandmanagerialskillsthatarenotalwaysavailable.Thisprocessmayentailnew

or amended legislation, institutional strengthening, planning, and establishing technical

standardsandregulatoryprocedurestailoredtothenatureofruralelectrification.

o Underthesecircumstances,extendingaccessinruralareasrequiresasystemofsubsidies

thatrecognizesthelowerincomelevelsofruralhouseholdsandhighercostsofsupply.

3.1.3.2 UniversalAccess–CleanCooking

For Kenya to achieve universal access to clean cooking by 2030 the following gaps, need to be

addressed:

• Regulatoryissues:

o Policy,strategyandregulationsrelatedwithbiomassusearestillinsufficienttoensurethe

sustainableuseofbiomassinthecookingsectordespitebeingthemajorenergyconsumer

inthecountry.

o Charcoal production sector is largely unregulated and, therefore, informal with low

efficiencyintransformingbiomassintocharcoal.

36

o Limitedavailabilityofperformanceorotherstandardsforenergyproductsandwherethey

exist, lack of implementation and enforcement. Consumers are therefore unprotected

againstsubstandardequipmentandservices.

• Awarenessandknowledgeissues:

o Lack of awareness of indoor pollution and its impact on health within the general

population86limitstherateofadoptionofefficientcookingstoves,especiallybytherural

population.

o Peopletendtoprefertraditionalcookingsolutionsbecauseofculturalheritage.Inorderto

increase the use ofmodern cooking solutions it would be necessary to raise awareness

aboutitsbenefitssopeoplewillstarttoshifttocleanerorimprovedcooking.

o Needtomainstreamgender,culturalpracticesandthenexusofenergy,especiallywiththesectorsofhealth,cookingandwater.

• Informationandsectoranalysis:

o Therearenogender-disaggregateddataonthestatusofthecleancookingappliancesand

fuelsadoption.Statisticsusedareestimates.Thisneedsacomprehensivestudytoinform

thesector.

o Noimpactstudyoftheongoingcleancookingappliancesandfuelsadoption.

• Cookstovequalityandperformance:

o Thenumberof improvedcookstovemodelsandfuelproductionsolutionscustomizedfor

localenvironmentsisstilllow,thereisevidencethatmanybasicICSperformpoorlyinthe

fieldat least inpartduetothedifficultyofaccessinghighqualitymaterials,andsystemic

supportforinnovation

o R&Donbreakthroughsolutionsthatcanofferhigherperformance(e.g.,fangasifiers)and,

even more important, more attractive and functional end-user focused designs, is still

limited.

o Forcleancookingandimprovedsolutionsthatdoreachthemarket,accesstostandardized

testingislimitedorunaffordableformany,anddoesnotincreaseenduserunderstanding

oftheirlikelyperformancesotheyareabletomakeinformedpurchasingdecisions.

• Last-miledistributionandproducerfinance:

o Distributionofcleancookingproducts iscostly,withnoeasyanswerstothechallengeof

reaching rural consumers; progress will require both experimentation with new

institutionalandretailapproachesandsignificantinvestmentintochanneldevelopment.

o In the immediate term, commercially oriented ventures likely need to focus on more

profitable urban and charcoal user consumer segments, reaching the rural consumer

requires cross-subsidization from more profitable urban market segments or less

commerciallydrivenbusinessmodels.

o BuildingsuccessfullastmilecleancookingbusinessesinAfricaisacostlyendeavour,dueto

productimportationhurdles,logisticandtransportchallenges,theneedforintensive

consumermarketing,andtheimportanceofextendingcredittobothlastmileretailersand

end-users(i.e.,viapayasyougoschemes).

86GlobalVillageEnergyPartnership,KenyaMarketAssessment,2012.

37

3.1.4 HighImpactInitiativesforEnergyAccess

3.1.4.1 IncreasingAccesstoModernCleanCookingo MoEP to leadon the creationof a cross-sectoral initiative to bring together different

on-goingefforts,likeGlobalAllianceCleanCookstove(GACC),andimprovecoordination

acrossagencies,privatesector,CSOsandNGOs.Thisinitiativeaimsto;

§ Foster an enabling environment by engaging national and local stakeholders,

buildingtheevidencebaseforthebenefitsofstoves,promotingstandardsand

rigoroustestingprotocolsandenhancingmonitoringandevaluation.

§ Promote industry standards for efficiency, safety, and emission reduction,

basedontestingandcertificationforcleancookingappliances,suchasICS.

§ Support development and implementation of large national programme on

scalingupICS.

§ Contributetoimprovingthepolicyframework,trainentrepreneursanddevelop

sustainable value chains and robust infrastructure for clean and efficient

cookingstovesandfuels.

§ Supportcontinuousresearchonconsumeruseanddemandforefficientstoves

andonthedesignofproductsthatmeetuserneeds.

o UniversalAdoptionofCleanCookingSolutions,objectivethatcanbepursuedunderthe

umbrellaoftheGACC;

o HumanandInstitutionalcapacitydevelopment-cookstoves;

§ Supporttheuseofimprovedcookingappliancesbyengagingyouthorganisations

and women MSEs in the production, dissemination and distribution of these

technologies

§ Conduct awareness campaigns on the benefits of clean cooking appliances and

fuels for remote/isolated populations. These awareness campaigns should

additionallyinformconsumersonhowtopurchasequalityICS.

§ Raise general awareness to the public about the available clean cooking

technologies

o InnovativeFinance,tosupportfinancialclosureandfinancingaccesstoenergyservices

andcleancookstoves;

§ Developfinancingschemestoprovidecredit tohouseholdsthatcannotafford

theupfrontcostsofaccesstomodernenergyservices;

§ Provide regulatory support for scalable and sustainablebusiness and financial

models.

3.1.4.2 IncreasingAccesstoModernElectricity• REA is tasked with the development and implementation of a clean energy mini-grid

programmeasameanstoacceleratecleanoff-gridaccess,including:

§ Provide distributed electricity solutions that support productive use and

economicdevelopment

§ Createmorefavourablebusinessenvironmentswithappropriatelyrefreshed(or

new) policies, regulations, and energy plans to incentivise commercial

investments (small,mediumand large scale)anddevelopmarkets (powerhive

concept).

§ Facilitatingfinancingformini-gridandstand-aloneenergyaccessprojects.

38

• Formulation of mini- grid regulation: - effectiveness of enforcement of the liberalised

regulatory environment by Energy Regulatory Commission (ERC); the ease of obtaining

generation and distribution licences by independent power producers, as well as Power

PurchaseAgreementsintheeventofthegridcomingtothelocalityoftheminigridproject

• Distributedelectricitysolutions:

o Distributedelectricity solutions i.e.mini-gridsor individual systems,aredeployed to

theunservedcommunitytoodistantfromtheexistinggridand/orthattheirdemand

istoosmalltojustifythehighfixedcostofextendingthegrid

o The regulatory environment for Pico solar and solar home systems for lighting and

productive use is already being developed; ERC has published regulations for

installation of solar systems, and Lighting Africa (IFC/World Bank) has made major

stridesinhelpingthemarkettoimproveproductstandards.KenyaRenewableEnergy

Associations (KEREA) is currently implementing a voluntary quality accreditation

programmeforsolarvendorsandintegrators.

o Strategy is to increase competition and flexibility in mini-grid provision through

measurestosimplifylicensing:developmentofanoff-gridstrategy,aconducive,legal,

and regulatory environment must be developed to support the private sector and

avoiddirectsubsidisationasmuchaspossible.

o Create a clear timetable for grid rollout to avoid unexpected duplication of

infrastructure. It should be very clear to installers of off-grid equipmentwhat time

theyhavebeforethegridarrivesatthelocality,asthiswillaffectthepaybackperiods

thattheyneedtoworkwithwhenconsideringtheirinvestments.

o Improvesmartgrid technologysolutions,grid-scalestorageand interactionbetween

renewablesandfossilfuels.

3.1.5 RelevantHigh-ImpactOpportunities87

• CleanEnergyMini-Grids,toacceleratecleanoff-gridaccess:

o Developandimplementsmall-scalerenewableenergysolutions;

o Providedistributedelectricity solutions that supportproductiveuseandeconomic

development

o Study on decentralised system. Mapping out of regions/populations for

decentralisedenergysystems

o Invest in disaggregated data to reveal gender disparities in relation to energy

poverty to achieve effective gender mainstreaming in decentralized energy

solutions.Thisiscrucialininformingrelevantpolicyinterventions

o Mini-Grid /micro-gridDevelopment strategy.Developmentofmini gridandmicro-

gridspolicy.Developframeworkforimplementationofmini-grids.

o ScalingUpofRenewableEnergyProgramme(SREP)

o Settingupofcommercialrenewableenergymicrogridinruralareaswithoutaccess

tonationalgrid

87ThisisbasedonthelistofHIOsidentifiedbytheGlobalActionAgenda

39

o DfiD inpartnershipwithAfD solarPVmini-grids: €30millionavailable for funding

mini-gridprojects(SolarPVmini-grids).

o Kfw Solar PV mini-grids High-Impact Initiatives Targeting 3 pilot projects. Result

basedfinancing.

o DfiDHydroelectricinitiative,KfwSolarPVminigrids:Financingelectricityaccess

o JointImportupto50kW,JointcreditMechanisms(JCM)-Japanesegovernment.

o Localmanufactureofsmallwindturbinessupportingelectricityaccess

• Universal Adoption of Clean Cooking Solutions, objective that can be pursued under the

umbrellaoftheGACC

• Improve smart grid technology solutions, grid-scale storage and interaction between

renewablesandfossilfuels.

• InnovativeFinance,tosupportfinancialclosureandfinancingaccesstoenergyservicesand

cleancookstoves:

o Develop financing schemes toprovidecredit tohouseholds that cannotafford the

upfrontcostsofaccesstomodernenergyservices;

o Provide regulatory support for scalable and sustainable business and financial

models;

o M-KopaSolarInitiative.OfferingsolarPicoandsolarHomeSystemsatacreditwith

arepaymentofover12months.

40

3.1.6 Riskmanagementforelectricityaccess

Kenyalikemostofthedevelopingcountriesfacessomeriskstointermsofaddressingenergyaccess.ThereareanumberofinitiativesthatGoKwilldotomanagesomeofthesepotentialrisksareincludedTable14andTable15.

Table14:RiskManagement

Challenge Causes MitigatingActions ResponsibilityUnreliabilityandpoorqualityofelectricitysupply.

Inadequategenerationcapacitytomeetthepeakdemand

PlanningcriteriontodefinetheneededamountofpowerandthetechnologymixUseofSolarPV

GOK,KETRACOandKPLC

Timelyelectrificationforuniversalaccess

Lackofimplementationcapacityandfinancialresourcesformini-grids

• Humancapacitybuilding• Providelowinterestcredit• Involvementofpoliticalleadersinprojectplanning

Government

Thehighcostsofelectricitysupplyinruralareasandthelimitedcapacityofhouseholdstopayfortheservicemakeitdifficulttoattractinvestmentinruralelectrification.

Lowpopulationdensityscatteredsettlementandlowpowerconsumption

Asystemoftariffsandsubsidiesshouldensuresustainablecostrecoverywhileminimizingpricedistortions.Provisionofmicro-gridsUseofalternativeoptionssuchasSolarlanternandSolarHomeSystems

GovernmentPrivatesectorCSOs

Coordinationbetweenregionalcountries

Lackofpropercoordinationbetweenregionalcountriesonfundingofregionalprojects

Settingupregionalbodytoplanforregionalinfrastructures EAC

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3.1.7 Riskmanagementforcleancookstovesandfuels

Table15:Riskmanagementforachievinguniversalaccesstomoderncleancookstovesandfuels

Challenge Causes MitigatingActions Responsibility

Lack of concrete policy to accelerateaccess to modern cooking fuels oradvancedcookstoves

Lack of momentum among nationalinstitutions to promote advancedcookstoves

Both National and County government totake access to modern cooking servicesandfuelsby2030asapriority

Government

Difficulties in the expansion of theinfrastructurefornaturalgasandLPGtoservecustomersinremoteruralareas

Scattered settlement making theexpansioncapitalintensive

Promotionofbiogasasthemainoptionforamoderncookingfuel

Establish rural based refilling centres andintroduceaffordablepackages

Government/private

Financingforcookstovesindustry

Thechannelsforprovidingcreditforthemanufacture or purchase of advancestoves, and for marketing them widely,areunderdeveloped.

Development of appropriate channels forextending credit for developing thecookstovesmarket

Government/private

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3.2 RENEWABLEENERGY

3.2.1 StatusandTrajectory

Kenyaisendowedwithlargerenewableenergyresourcesofwind,geothermalandhydropowerbutdevelopingtheseposesanumberofchallenges.

Biomass fuels are the largest source of primary energy in Kenya with wood-fuel (firewood andcharcoal)accountingforabout69%ofthetotalprimaryenergyconsumption.About55%ofthis isderivedfromfarmlandsintheformofwoodybiomassaswellascropresidueandanimalwasteandtheremaining45%isderivedfromforests.There isagapbetweentheexistingtreecovervis-a-visthe minimum constitutional requirement of 10%88. The continuous overreliance of Biomass as aprimarysourceofenergythreatensachievementofthisrequirement.

The Government in 2010 developed a strategy for introduction of biofuel blends in the market.Facilities for ethanol-gasolineblendinghavebeen completed in Kisumu tobe followedby EldoretandNakuru.However,therearenotsufficientquantitiesofbio-ethanolfeedstocks.

Afeasibilitystudycarriedoutunderbiogasinitiativeestablishedthatitispossibletoconstruct6,500biogasdigestersinKenyaevery5years89.

Thedemandforsolarwaterheating(SWH)isprojectedtogrowtomorethan800,000SWHunitsby2020equivalentto300,000TOE.Thisrepresentsagrowthrateof20%perannum.Thisdemandwillmainly be from domestic, institutional and small commercial consumers spurred by theoperationalizationoftheEnergy(SolarWaterHeating)Regulations,201290.

Anestimateof6MWofsolarPVSystemcapacitywasinstalledinresidentialandcommercialsectorsthrough the private sector initiative in 2014. By the year 2020, it is projected that the installedcapacityofsolarphotovoltaicsystemswillreach100MWegenerating220GWhannually91.

The installedcapacityofwindpowerconnectedtothegridasatNovember2014was25MW.The300MW Lake Turkana Wind power project is expected to be commissioned in 2017. Othercommittedprojects include110MWatKinangopandNgong.Thereareproposals fordevelopmentof650MWofwindpoweratMarsabit,Isiolo/MeruandNgong92.

Thetotal installedelectricitygenerationcapacity inKenyawasat2,299MW93asof June2015.Thetotalrenewableenergygenerationcontributionwas66.03%,whichincludedhydropower(821MW),geothermal (598MW), cogeneration-biomass based (26MW) and wind (25.5MW). Off-gridrenewablesystemsconstitutedofwind0.55MW,solar0.55MW.Hydropowercontributesthemost,representing 36% of the total production (IEA, 2012). Geothermal contributes to 26%. However,

88 http://www.erc.go.ke/images/docs/National_Energy_Petroleum_Policy_August_2015.pdf





93KenyaPowerannualreport2014/2015

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fluctuations in yearly hydropower availability due to droughts has historically resulted in acuteelectricity shortages, causing the capacity factor to drop frommore than 53% to as low as 33%during severe drought conditions in 2009 (Government of Kenya, 2011).When combined with alimiteddevelopmentof thesegeothermal resources, thishas led to thedependenceof thepowersector on imported oil, almost entirely from the United Arab Emirates, for over 30% of totalgenerated power (UNEP, 2006; EIA 2014). Due to unsustainable supply, the use of biomass forpowergenerationislimitedtobagasseandmunicipalwaste.

AccordingtoLCPDP2013-2033renewableenergyinthepowergenerationmixisplannedtobe42%of the 20,156MW in 2030. The total installed capacity of renewable energy in the powermix isplannedtobe8,185MWconsistingof1,039MWhydro;5,110MWgeothermaland2,036MWwind.However,theSE4Allactionagendatargetreversethepercentageofrenewableenergyfrom42%to80%renewableby2030.

3.2.2 ExistingPlans/StrategiesThefollowingstrategieswereputinplacetomeetenergydemandforrenewableenergyresources:

• Kenya National Domestic Biogas Programme (KENDBIP) aiming at supporting theconstructionofover41,000domesticbiogasplantsby2018.KENDBIP,which ispartoftheAfricanBiogasPartnershipProgramme(ABPP),firstphasewasimplementedfromyear2009to the end of year 2013, and had a target of, among sector development objectives,installing 8,000 biogas digesters within 4 ½ years and through the initiative over 11,000digesterswereinstalled.Secondphaseisdesignedtorunfor4yearsfromJanuary2014totheyear2017andtargetsinstallationof27,500digestersacrossthecountry.

• PIMA Gas, the initiative of pay-as-you-go LPG.Gulf gas developed PIMA gas, which is asystembywhichaclientcanbuygas insmallquantities–assmallasKShs50,which isanamountequaltothecostofcharcoalorpetroleum,butcontainingmoreenergy.Clientscanbuya1kggascanisterwithaburnerforabouttheequivalenttothepriceofacharcoalorpetroleumburner,andthenhavethegasbottlerefilledwhentheyneedto.

• BioenergyandLPGStrategy:theoverallobjectiveofthestrategyistoimprovesustainabilityofbioenergyproductionandutilizationandtopromotealternativemodernformsofenergywithaviewtoensuringacleanenvironment.Thespecificobjectivesare;

o Promotesustainabilityintheproductionofbioenergyo Promote efficient collection and use of energy and fertilizer generation of all

municipal and business wastes to promote and sustain a healthy and cleanenvironment

o Promotealternativecleanformsofenergye.g.biogas,briquettesandliquidbiofuelso Promoteefficiencyintheutilizationofbioenergyandalternativemodernformso Enhance environmental protection and contribute to enhancement of climate

controls.• Feed-in tariffs for Renewable Energy (2012) for electricity generated from renewable

energy sources; specifically wind, biomass and small hydro in order to safeguard theinvestments made by the respective developers in data collection undertaking feasibilitystudies; and to boost the development of Renewable Energy Sources Electricity (RES-E)generation.Thetariffallowspowerproducerstosellrenewableenergygeneratedelectricityto an off-taker at a pre-determined tariff for a given period depending on type of REtechnologyused.

44

• GDCBusinessPlan&Strategy-Aspartof strategy,GDC is engaged inearly generationofelectricityusingportablemodularpowerplantsthatcanbecommissionedwithinsixmonthsfrom the time a well is drilled. In the next 10 years, GDC will carry out detailed surfaceexploration, drill wells and invest in wellhead generation units to achieve the planned3000MWandatleast5,000MWeby2030throughanacceleratedgeothermaldevelopmentprogramme94.

• NetMetering-thedraftnationalEnergyPolicy2015containsprovisionsonnetmetering95.TheGovernmentaims,under thepolicy’sAgenda forAction, todevelop in the short term(fromtheyear2012-2016),necessarylegislationfornetmetering96.

• Installationofwindmastswithdataloggers:TheMinistryhasannualprojectof installationofwindmastswithdataloggers.Thewindmastswithdataloggersataheightof40and20metres installedat95windsites. In2014,mastswithdata loggersd100metresatfive(5)sites.

3.2.3 ExistingGaps

Kenyahashugerenewableenergyresourcesbuttheirrateofdevelopmenthasbeenverylow.Thegapsinclude:

• Limitedpubliclyavailable informationonRE resourceassessmentandmapping to supportinvestmentpromotion,decisionmakingandenergyplanning;

• LimiteddiversificationonpoliciestoaddressspecificissuesandchallengesassociatedtothedifferentRenewableEnergyTechnologies(RETs);

• Limiting incentives for private sector in the development of the renewable energytechnologies

• LackofgridaccessinRenewableenergyresourceendowedareassuchasNorthKenya.

3.2.4 HighImpactInitiativesforAchievingtheOverarchingObjectiveofRenewableEnergy

Therearevariousoptionsofactionstoachievethesettargets.Theregionalcontextisalsoimportantinrelationtopowergeneration,asKenyaisalreadypartoftheEastAfricanPowerPool.Inordertoachieve 80% renewable energy in power generation a combination of the following action areasmustbeundertaken:

Biomassutilizationandpromotionofalternativeenergysources

• Develop wood fuels (firewood and charcoal) supply and demand master plan for the mainsupplyanddemandcentres(includingtreecover inventory,classificationofharvestingzones,relevant data, analysis of wood fuels flows, development of conditions and technicalspecificationsforwoodfuels,productionanduse).

94http://www.gdc.co.ke/index.php?option=com_content&view=article&id=161&Itemid=15595“asystemthatoperatesinparallelwiththeelectricaldistributionfacilitiesofapublicutilityandmeasures,bymeansofoneormoremeters,theamountofelectricalenergythatissupplied.Itisanincentiveforconsumersofelectricalenergytosellrenewableenergygeneratedelectricitytoaretailerordistributorasthecasemaybe.”96Ibid,section9.9.1.3(2)

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• Development of strategy for use of denatured bioethanol as household cooking fuel givingconsiderationtodesignofconducive legalandregulatoryframeworkforcompaniesoperatingin the sector, communication to potential users on the benefits of using the technology anddefinitionofcreditfacilitiestoimproveaccesstofinancebyusers.

• Thebiomasssupplychainwillundergoreformsaimedatprovidingamediumto long-termreduction in relianceon charcoal,whilst retaining the rural economic valueofbiomassbypromotingcost-effectiveandefficientalternatives.Thiscanbedonebyredirecting jobs tootherpartsofthealternativebiomassvaluechain;radicallyimprovingcookstoveemissionsand efficiency performance to reduce energy costs, and improving the productivity andsustainabilityofwoodproduction.KeyactionsidentifiedduringtheSE4ALLAAdevelopmentare:

o Support transition to much more efficient charcoal production methods, includinginvestmentinnecessaryequipment.

o Introduce a harmonized tax regime for charcoalwhich rises over time, and reducetaxesonalternatives(e.g.biomasspellets)atleasttotheleveloftaxesoncharcoalorlower

o Create cross-ministerial taskforce (national and county) to effectively coordinatebiomass related activities in particular national awareness-raising strategies toincreasedemandforhighertierstovesandfuelsincludingbioethanolfuel.

o Establishinfrastructureforscalinguptheuseofbioethanolasahouseholdcookingfuel in Kenya based on the work already done to pilot this and the subsequentinclusionofbioethanolasnon-excisablecommodityintheExciseDutyBill2014

Renewablepowergeneration

Kenyahasenoughrenewableenergyresources,whichcanbedeployedtoachieveitsSE4Alltargetof80%shareofrenewableenergyinpowergenerationmix.Thefollowingactionswillberequiredtoachievethe80%targetofrenewableenergyintheenergymix.

• Developmentof a legal and regulatory framework to foster thedevelopmentofRE: Thiswillinclude;

o DevelopaspecificRenewableEnergyStrategywithcleargoalsandtargetsintegratedin theEnergySectorWidepolicy framework.This should include targetsandgoalsforgrid-connectedandoff-gridREtechnologyintegration.

o Developamini-gridpolicy that fosters theuseofREwith guidelines and targets inordertoincreasetheconfidenceoftheprivatesectortoinvestintheseprojects.

• Investment Incentives:Working together acrossGovernment Agencies and key stakeholders,MoEPwillupdateandexpandincentives,andlimitsubsidiesby:

o ReviewingtheFiT inplacetoprovideadequateincentivesto investors inrenewableenergyprojects

o Foster the development of a number of innovative funding mechanisms such asgrants,challengefundstopromotethedevelopmentofREprojects.Afterattaininga

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disseminationofcertaincriticalmassintermsofnumberofunitsandassemblers/manufacturers,therenewableenergyindustry,withthesupportofMoEPandotherstakeholders,canbecomeself-sustainingandsubsidiescanbegraduallywithdrawnwithout any adverse effects on continued dissemination of renewable energytechnologies.

o Implementagovernmentalsubsidyforsupportingthedevelopment(pre-investment,capitalandoperation)ofmicro/mini-gridsinparticularforproductiveuseinoff-gridareas;

o PrioritisegriddevelopmentinareaswithREpotential.

• DevelopingaSE4Alldatabase:toimprovecollectionofgenderdisaggregatedenergydataforplanningandinvestmentpurposes.Thedatabasetoinclude;

o RenewableEnergyResourceSystem(RERS):anumbrellaforthedifferentrenewableenergy resources assessment and mapping, in order to confirm the potential ofspecific sites and accelerate project development by the private sector. Thisdatabase will also be linked to, or use, the resources available under SE4ALLrenewableenergyhubatIRENA.

o Biomass InformationSystem(BIS);Themajorpurposesofthe informationsystemisto:(i)Keeptrackofthenewbiomassenergytechnologiesandtheirsuccessrates;(ii)Support continuous updating of the strategy; and (iii) Provide timely genderdisaggregatedinformationfordecisionmakingandplanning.

• PowergenerationprojectsunderREFIT:o Geothermal:powerpurchaseagreementapproved407MW;awaitingnegotiation400.7

MWanddrillingongoing1,055MW

o Wind:powerpurchaseagreementapproved530MW;powerpurchaseagreementtobenegotiated100MW

o Hydro:purchaseagreementapproved39.3MW,powerpurchaseagreementtobenegotiated511MWofhydro,importationfromEthiopiappurchaseagreementapproved400MW

o Biogaspowerpurchaseagreementapproved2.4MW

o 10MW,10MWofco-generation(baggase)andbiomassgasificationrespectivelypurchaseagreementapproved

Industrialandagriculturalprocesses

In January2010,Kenya revised theFITpolicy97,which resulted in theadditionof three renewableenergysources:geothermal,biogas,andsolarenergyresourcegeneratedelectricity.Inaddition,the

97http://www.unep.org/greeneconomy/SuccessStories/FeedintariffsinKenya/tabid/29864/

47

revised policy extended the period of the power purchase agreements from 15 to 20 years andincreasedthefixedtariffsperkilowatt-hourforpre-existingwindandbiomassundertheFIT.

Thecaptureandrecyclingofwasteheatandtheuseofrenewableenergysourcesinindustrialandagriculturalprocesseswillbeenabledbythefollowingactions:

• Mandateagroprocessingcompaniestoupgradetheirbiomass-basedcogenerationpotentialinordertobenefitfromtheFITpolicy.Thiswillinvolve;

o Feasibilitystudyonresourceassessment toestimatecogenerationpotential in theagroprocessingcompanies.

o Formulationofstandards&regulationsforbiogas

o ContinuedreviewofthecogenerationFITs

o Formulateandimplementanationalstrategyforregulatoryframework,certificationandcoordinatingdevelopmentofcogeneration.

• Developandimplementlegalandregulatoryframeworkforexploitationofmunicipalwasteintoelectricitygeneration.

• Directuseofsteamfromgeothermalpowerproductionplantsforindustrialprocessheat

Buildingandappliance98

Involves the design and retrofit of buildings incorporating renewable self-generation options,including:

o Rooftopsolar

o Solarwaterheatingsystem

o IntegratedsolarPVsystems(buildings)

o HarnessingsewerageforBiogassystems

Transportation

Actionswillfocusonincreasingtheshareofrenewablesinthefuelsupply:

o Programmetobuildvaluechainsforbiofueluseintransport(focusonResearch)

o Overall policy framework for introduction of biofuels including: Production andblendingstandardsforE30andB5.

o Institutionalandregulatoryframeworkneededpricingpolicyforbiofuels.

o BaseknowledgeofbiofueloptionsandviableapproachesinKenya

98http://www.un.org/wcm/webdav/site/sustainableenergyforall/shared/Documents/SEFA-Action%20Agenda-Final.pdf

48

o Data/information systems on feedstock types, production andmarket assessment;there isalreadysomeexperiencewithethanolproductionandblendingwhichcaninformnewprojects.

o Formationofbioenergypartnershiptobringtogetherpublic,privateandcivilsocietystakeholders in a joint commitment to promote bioenergy for sustainabledevelopment. The Partnership to focus on three strategic areas: sustainabledevelopment,climatechangeandfoodandenergysecurity99


• CleanEnergyMini-Grids,toacceleratecleanoff-gridaccess:o Developandimplementsmall-scalerenewableenergysolutions;o Providedistributedelectricity solutions that supportproductiveuseandeconomic

development;o Studiestoestablishviabilityoftherenewableenergyresourcesinthecountryo Acceleratingprivate-sectorinvestmentthroughprivateleveragemechanisms

• EnergyandWomen’shealthEnergyisacriticalenablerforvitalprimaryhealthcareservices,especiallyduringmaternalandchildbirthemergencies.Withoutelectricity,mothersinchildbirthareparticularlyatrisk.Whilematernalmortalityhasdeclinedinthepast20years,theinternationalcommunitystillhas farther to go to save lives and ensure that health workers are given the tools andfacilitiestheyneedtoprovideeffectivemedicalcare.Electricityisneededforbasiclighting,vaccinestorage,accesstocleanwater,equipmentsterilization,andtopowerotheressentialequipment.Yetmanyclinics,hospitals,andworkersdonothaveaccesstothepowertheyneed: TheWorldHealthOrganization recently found thatup to58percentof health carefacilities in Sub-Saharan African countries have no electricity at all101. Some of thedeliverablesofthishigh-impactopportunityinclude:

o Mapping themarket: Understand the existing gap in access to energy-dependenthealthcareservices(bothforpreventionandfortreatment).

o Securing evidence for guiding intervention design: Engage the health sector inassessingthegapinenergy-relatedservicescriticaltowomen’shealth.

o Supply chains andmaintenance:Developpublic-privatepartnerships to encouragegooddesignandmobilizefinancingforinstallation.

o Building local and national capacity: Establish appropriate system design,maintenance and repair requirements to train local electricians, mechanics andengineers.

o Advocacyandmedia:Mobilizepublic/privateenergysectorlinkageswiththehealthsector and catalyse support andaction for identifiedpolicies/investments to close

99http://www.un.org/wcm/webdav/site/sustainableenergyforall/shared/Documents/SEFA-Action%20Agenda-Final.pdf100ThisisbasedonthelistofHIOsidentifiedbytheGlobalActionAgenda

101 http://www.se4all.org/hio/energy-and-womens-health/

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the energy gap in healthcare, as well as catalysing sustainable energy serviceinstallationsinmedicalclinics102.

102 http://www.se4all.org/hio/energy-and-womens-health/

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3.2.6 Risksandmitigationforrenewableenergy

Table16:Riskmanagementforrenewableenergy

Risks Impact Mitigation Responsibility

Hydrologyrisk Unfavourable hydrological conditions affecting thegenerationcapacityofhydropowerplants

a) Properwaterreservoirmanagement

b) Diversificationofgenerationinenergymixtoincludewind,geothermal,andreduceexposuretorisksofhydrologicalrisks

c) Thegovernmenttoestablishacommitteecomprisingofdifferentstakeholderstoensureco-ordinationatpolicy,regulationandoperationallevelsonmattersrelatingtoapportioningofwaterresources

d) Planforimplementationofhydrologymitigationlevyinpowertariffs

e) MinistryofWaterandIrrigation(MoWI)andMinistryofEnvironmentandNaturalResources(MoENR)shouldhelpMoEP

MoEP, MoWIandMoENR

Politicalrisks Theriskisthatthegovernmentmayalteritspoliciesorintroduceotherregulationsmayadverselyaffectinvestments and existing companies operationssuch as county governments demanding revenuesinformofleviesinrespecttopowerstationsthatliewithin their counties and this could increase thecostofpower

Putinplaceeffectivemanagementprogrammetoavoid/minimizeadverseeffectsofgovernment/countylegislationonitsoperations.

On-going reviewof theenergyPolicy&Act has taken into considerationchanges in the constitutions including specific changes related to theenergysector.

Nationalparliament andregionalparliament

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Single buyermodel

Currentlythereisonebuyer(KPLC)ofallthepowergeneratedinKenya.Thisisamajorriskasanythingaffecting the financial health will adversely affectthepowergeneratingcompanies

a) Companiestobeallowedtosupplydirectlytoselectedlargeconsumers

b) Engagingwiththepowerdistributortoensurebillingdisputesareresolvedpromptlyandpaymentmadetoavoidadverseeffectsoncashflows.

c) Appointmentofindependentoperatorstoensureeconomicorderofpowerdispatchisstrictlyfollowed.

d) MinistryofIndustrialisationandenterpriseDevelopment(MoIED),KPLC,ERCandMoEPshouldworktogether

MoEP

MoIED,KPLC,ERCandMoEP

Availability ofland/siteacquisition forpowergenerationprojects

Anyprojectrequiringacquisitionofprivatelandforits development must always consider the ProjectAffected Persons (PAPs) such as resistance of thecommunities to engagewith the site owners, hostcommunity unwillingness or opposition to relocatefrom identified project site, political factors, highcompensationsdemandsbythecommunityandtheineffectivestakeholdermanagement.Thismayleadto delay in implementation of the projects thusmissingoutontimeliness

a) ExpeditelandacquisitionandwillingnesstoengagewithallPAPsfromtheprojectsites.

b) Carryingoutenvironmentalandsocialimpactassessment(ESIA).TheresultofthisformthebasisforsuccessfulnegotiationwiththePAPstorelocateandcompensationoftheirlandtobeacquiredfortheprojectdevelopment

c) ThroughtheCorporateSocialInvestment(CSI)supportthePAPsinvariouscommunityanddevelopmentactivitiestoenhancestakeholderrelations

d) Governmenttosupport/facilitatetheacquisitionoflandforpowerprojects

Government

NationalEnvironmentalManagementAuthority(NEMA)

Community

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Financialrisk Delayinprojectimplementation a) MoEP Identifies, evaluates and hedges financial risks in closecooperationwithoperatingunits

b) Writtenprincipalsforoverallriskmanagement,aswellaswrittenpolicies covering specific areas such as credit risk, liquidity risk,foreignexchangerisk,interestrateriskandpricerisk.

c) PutinplaceaninternalauditfunctiontoassistMoEPinassessingtheriskfacedbythecompanyonanon-goingbasis,evaluateandtest the design and effectiveness of its internal accounting andoperationalcontrols.

d) Development of detailed risk management policies (subject toreviewandapproval byAudit andRiskManagementCommittee)andfortheday-to-dayimplementationofthosepolicies.

e) NationaltreasuryshouldhelpMoEP

MoEP, NationalTreasury

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3.3 ENERGYEFFICIENCY

3.3.1 CurrentStatusandTrajectory

The available data shows the that since 2006 to 2012 the energy intensity for Kenya has been

constantato.26TOE/$2005PPP in thehencemakingtheanalysisof thetrajectory for therateof

improvementinenergyefficiencyuntil2030,usingenergyintensityasthemeasure,iscomplex.As

indicated in the targets section, energy intensity is the measure used in the Global Tracking

Framework to imply improvements inenergyefficiency in the contextof SE4All.However, energy

intensity is an imperfect proxy given that a number of factors not necessarily linked to energy

efficiency can affect it. Primary energy consumption, total GDP, and Purchase Power Parity (PPP)

figuresareusedtocomputethisindicator.In2012,Kenya’senergyintensitywasat0.25toe.

Given (i) the different sectors in which energy efficiency can be applied (grid electricity,modern

cooking,buildings,appliances,transport,etc.),and(ii)theneedforenergyconsumptiongrowthto

buildtheeconomy,itisdifficulttosetfirmnumbersandtargetsonenergyefficiency.Theapproach

of Kenya to energy efficiency, and the trajectory, in the target section, is based onmeasures to

encourage efficiency (e.g. energy audits in industry, encouragement ofmore efficient appliances,

mandatestoswitchtosolarwaterheaters,etc.)

3.3.2 ExistingPlans/Strategies

In the sphereof energy efficiency, plans and strategies addressing inter alia residential, industrial

andcommercialenergyefficiency,andenergyefficiencyintransport,are:

• EnergyEfficiencyImprovementinbuildings-newresidentialbuildingsarerequiredtoinstall

solarwaterheaters,withtargetof800,000unitsby2020103.

• Energy Management Regulations (2012) provide guidelines on energy auditing and

management. The government is also offering support to Kenya Association of

Manufacturers(KAM)toundertakeenergyefficiencyauditsandotherprogrammetrainings.

• Energyefficiencyinitiativesrelatetobiomasscookingandheating.Mostofthisworkisled

by civil society with support from the government as seen in the development and

implementationofKenyaCountryActionPlan(KCAP)in2013andsubsequentestablishment

oftheCleanCookstovesAssociationofKenya.

• Kenya Power is undertaking the following measures to improve efficiency: Compact

FluorescentLamps(CFL)Rolloutintheresidentialsector.In2010KenyaPowerstartedwith

distributionof1.25millionenergysavingbulbs inPhase1andareproposing3.3Million in

Phase2.Theaimistoreach100%efficientlightingby2020;

• The Kenya Association of Manufacturers (KAM) has been running programmes geared

towardsimprovingenergyefficiencyinKenyanindustry.TheAssociation,throughtheCentre

for Energy Efficiency andConservation (CEEC), hasbeen conductingenergy audits, energy

efficiencycampaigns,trainingofindustrypersonnelinenergyefficiency,amongotherssince

2006.

103DraftNationalEnergyPolicy2014

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3.3.3 ExistingGaps

ThemainweaknessestoimprovetheefficientuseofenergyinKenyainclude:

• LimitedcapacityandawarenessofmainenergyactorsonEErelatedmatterssuchasenergy

saving opportunities, investment costs, financing instruments, available technologies and

standards;

• Limitedinformationandoptionstoaccessmoreefficientfuelsandtechnologies;

• Limitedunderstandingonthepotentialsavingsfromthedifferenteconomicsubsectorsand

theimpactontheprojectedenergydemandifEEmeasuresareimplemented;

• Need to follow up implemented programmes and initiatives in order to understand their

impactandidentifylessonslearnedforfutureinitiatives;

• Lowawarenessbyendusersintheresidential,commercial,industrialandtransportsectors

onthebenefitsofinvestingandadoptingenergyefficientmeasuresintheiractivities;

• Lowcapacityinorganisationsandweakinstitutionalframeworkingeneral:themanpowerin

the key institutions dedicated to EE. There is also a constraint on budget allocations

earmarkedforEE;

• Inadequatenationalcapacitytoplanandregulatebuildingandapplianceefficiency.

3.3.4 HighImpactInitiativesforAchievingtheOverarchingObjectivesofEnergyEfficiency

Gridinfrastructureandsupplyefficiency

KenyanGovernmenttargetstomaximizeefficiencyintheelectricitysub-sectorbyreducingwastage,

theftand losses.Throughsupplyanddistribution, thegovernmentaimstoreduce losses tobelow

15%by2020fromthecurrentlevelof18.6%104.

ActionAreasunderthisobjectiveare:

• ImprovingthetransmissionsystembyuseofHighVoltageDirectCurrent (HVDC) linesand

installationofhighefficienttransformers,

• Automation of the distribution system which will be achieved through: installation of a

modern robust and integrated Distribution Management system, installation of different

types of sensors on feeders, transformers and distribution substations, installation of

meteringontransformersandfeeders,

• IntegratedGridmodernisationProject(SmartGridProject):Thisprojectisexpectedto

transformtheexistingdistributionpowerinasmartgridcapableofprovidingreliable,

quality,affordableandsustainableenergyservices.

104KPLCAnnualReport2012-2013.

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BuildingsandAppliances

Widespread implementationof state-of-the-artpolicies,buildingdesignand technologies, coupled

withbehaviourchangecoulddeliverreductionsinenergydemandfromnewandexistingbuildings

of over 50% compared to business as usual (IPCC, 2014). Achieving such savings would not only

significantlyreduceGHGemissions,butalsoproduceadditionalcomfort,health,environmentaland

economic benefits. Kenya has put in place various policies to address energy efficiency in the

building and appliance sector which include Minimum Performance Standards (for CFL, motors,

refrigerators), solar water heating regulations, 2012 draft energy management regulations,

regulationsoninstitutionalbiomassandstandardsforbiomasscookstoves.

Industrialandagriculturalprocesses

AsurveyofKenyanindustriesrevealedthatwastageofenergyinputrangedfrom10%to30%.This

wasattributed to lackof information,motivationandexpertiseaswellas financial restrictions.At

theendofthe initialphaseof theGlobalEnvironmentalFund-KenyaAssociationofManufacturers

(GEF-KAM) Industrial Energy Efficiency Project, in 2006, cumulative energy savings to the tune of

1,800GWhhadbeenattained,equivalenttoshuttingdown200MWplantforoneyear.Animportant

benefitofenergyefficiencyisthatitispossibletoavoidemissionsofCO2tothetuneof5.2million

tons by the year 2015, corresponding to energy savings of about 16,130GWh over the period.

Actionsincludethosethatwillrealizeopportunitiestoimprovetheefficiencyofbusinessoperations

andproductdesign,reduceenergyconsumptionandwastefulpracticesalongthevaluechain.

Agriculture

AgricultureisoneofthemostimportantsectorsintheKenyaneconomy.However,majorityof Kenyan practice small-scale subsistence farming and the use of energy consumingtechnologies inminimal.Mostly farming isdonemanually and theydonotpractice valueadditiontotheir farmproducts. Thiscanbeattributedto lowincomelevelstoaffordthetechnology hence huge losses due to badweather. However,with economic growth andfarmers will shift from subsistence farming to modern agriculture thus energy efficiencymeasures would be important for agricultural producers save energy without harmingproductivity.

Transportation

Accordingtothe internationalenergyagency (IEA), thetransportsectorhasthehighestgrowthof

CO2emissionsofanysector–itscontributiontoenergyrelatedCO2emissionsareestimatedtogo

fromonequartertodaytoone-thirdby2050.Blackcarbonandpollutantemissionsarealsosetto

increasesimilarlywithmajorhealthandshort-termclimate impacts.Transportsectoraccountsfor

13%ofKenya’stotalfinalenergyconsumption(TFEC)(71x109megajoules).Kenyatransportsector’s

TFECgrewby85%between1990and2010equating toannualgrowthofapproximately6.4%per

year (IEA, 2012). This growth represents the fast growingmotorisation of the economy,with the

numberofvehiclesregisteredinthecountrydoublingoverthelastfiveyearperiod(KenyaNational

BureauofStatistics,2013).This isdueto increases inprivatecarusethat isexpandingas incomes

rise,themiddleclassexpandsandthepublictransportsectorcontinuestodecline.

56

Actionsneeded

o Reviewing the tax policy on importation ofmotor vehiclewith a view to incorporating

measures that will encourage importation of environmental-friendly and low-fuel

consumingmotorvehiclessuchashybriddesignedmodels,

o Promotionof low-costpublictransportmodessuchasbusrapidtransit(BRT)andother

meansofmasstransport,

o Proper urban and transport planning to facilitate efficient and low GHG modes of

transportation,e.g.decongestingroads,

o Encouraging non-motorized modes of transport (NMT) by creating bikeways and

pedestrianwalkways,

o Creating transport demand management measures that encourage or favour public

transportandNMT

o Creating a programme to phase out old and inefficient (high fuel-consuming) motor

vehicles,whileencouraging importationofefficientvehicles through tax incentivesand

otherfinancialtools,

o Creatingawarenessandpossiblycarpoolingpoliciesthroughpunitivetaxesandcharges,

e.g.roadandfuelleviestoreduceunnecessarytravel,

o Enforcingvehicleinspectionrulestoensuremotorvehiclesarewellmaintainedinorder

toreducepollution.

o Enactingalawthatwouldcompelvehicleownerstoinstallpollution-controldevices,such

as the three way catalytic converters that can inter alia converting nitrogen oxides

includingtheinfrared-activeglobal-warmingcausingnitrousoxide(NO2)tonitrogenand

oxygen,

o DevelopingaLightRailTransit(LRT)inmajorcitiesandtownstodecongesttraffic,and

o Improving the rail-network to facilitate low-cost and low-carbon long-distance

transportation of cargo and passengers, construction of standard gauge railway is

underway.

MoEP will establish a dialogue and collaboration with the SE4ALL Energy Efficiency Hub. The

CopenhagenCentreonEnergyEfficiency(C2E2) isthethematichubforenergyefficiency;withthe

primeresponsibilityofsupportingactionstowardstheSE4ALLenergyefficiencytarget.


o AdvancedLighting&ApplianceEfficiency,

o EnergyEfficiencyinBuildings,

105ThisisbasedonthelistofHIOsidentifiedbytheGlobalActionAgenda

57

3.3.6 Riskandmitigation

Table17:Riskmanagementinachievingtheenergyefficiencytargets


Exchangeraterisks relatedto theprojects,especially forequipmentsold

ininternationalmarkets

Avoidance of buying

efficientequipment

Local manufacture of energy

efficientequipment

Government

Regulatory, governance and contract uncertainties with equipment

suppliers, contractors and third parties who may be necessary to

implementprojects;

Lack of confidence in the

organisations management

to issue contract to Energy

ServiceCompanies

Strengthen the regulatory and

governanceofcontracts

MoEP

Limited access to capital/credit, which often implies a very short-term

payback approach to EE project evaluation especially for small micro

enterprises

Inability to pay for energy

efficienttechnologies

Increasingthecredittenor

Creation of a fund to support

energyefficiencyprojects

Financial

Institutions,

CSOs,

Development

partners

Themismatchof investment costs and energy savings costs, budget and

credit constraints and the opportunity costs of exhausting one's credit

limitsonenergyefficiencyratherthanonincreasingsales;

No budget set aside for

investinginenergyefficient

projects

Inclusion of budget of

implementation of energy

efficient projects in the

investmentplan

Government

Availabilityofenergyisacriticalissue:Evenwhenmanufacturingfirmsare

willingtoassumeahighunitcostperkWh,energysupplyisoftennotonly

insufficient, but also unreliable, giving rise to costly backup and self-

generation (e.g. smelting and energy dependent, continuous chemical

processes)inmanycompanies

Energy cost remains high

even after installation of

energy efficient

technologies

LoweringtheunitcostperkWh

58

3.4 ADDITIONALNEXUSACTION

3.4.1 CurrentStatusandTrajectory

SustainableenergysupplyisaprerequisiteforregionalgrowthandpovertyreductioninKenya.Thekeynexusare in theenergysectorare inenvironmental,health, foodsecurity,waterandgender.Water is critical for energy security; at the same time, there are areaswherewater for irrigatedagriculturewillnotbeavailablewithoutenergyforpumpedsupply.Energyisalsorequiredforcropprocessing,andvalueadditionofagriculturalproducts,which ismainlydonebywomen.Accesstomodern energy servicesmay improve livelihoods and increase small farm income for subsistencefarmersaswellasincreasedfoodsecurity.Energyproductionrequiresmassivequantitiesofwaterandmostwaterdistributionprocessesuselargeamountsofenergy.

The cornerstone of the Kenyan economy and employment is agriculture and a steady growingmanufacturing base. The national government has heralded a call for agricultural innovationtargeting new value additions and product diversifications. To support value chain upgrades inagribusiness,majorinvestmentsarebeingmadeinrenewableenergy,hardinfrastructureandwatermanagement solutions to boost growth and production efficiencies. Today, large amounts ofagriculturalproductsneverreachtheconsumersimplybecauseoflacksofprocessingtechnologies,cooling,value-addedtreatment,packagingsolutionsandlogistics.

3.4.2 ExistingPlans/Strategies

Existingstrategies

• ASAL Development – Irrigation: 404,800106 hectares will be put under irrigation by 2017especiallyintheAridandSemi-AridareainTurkanaandTanaDelta.

• There exists concerted effort by the Government to electrify public institutions (schools,healthfacilityandmarkets);thetargetforuniversalconnectivityinstitutionstoelectricityisexpectedtoreach100%by2015asperREA’sRuralEnergyMasterPlan.

• Installation of renewable energy power plants for processing (cooling and drying) ofagriculturalproduce.

• Policy review and enforcement and approaches that cut across the nexus issues thatwillcapture information and awareness raising, policy integration (normative, organizational,and procedural) and develop an energy sector land-use plan to reduce competition andclarifywheretolocateinfrastructure.

• NationalGreenHouseProjecthasinstalledatotal131greenhouseunitsacrossthecountry.

3.4.3 Gaps

Thefollowingarethegapsintheenergynexus;• Un-harmonizedlegislation(e.g.landact,wateractwithregardtoriparianland)andpolicy(e.g.

forlanduseofenergycrop)• Un-coordinatedsectorinterventions,lackofawarenessraisingandinformationabouttechnical

106SecondMediumTermPlan(2013-2017)

59

(innovative) solutions which have mutual benefits (e.g. rainwater harvesting, exploitation ofalternativesourcesofenergyetc.),promotingresourceefficientsolutions,e.g.dripirrigationaswaterefficientirrigationsystem,energyefficientpumpingsystems,etc.

• Lack of comprehensive plans (e.g. water allocation plan, land use plans), involving otherministries (e.g. involvingwaterministry andwater sector institutions in the development andreviewofoff-gridruralelectrificationplans(onbasisofrenewableenergies)

• Insufficientresourcedata(e.g.regardinglanduseforenergycrop,waterabstractionsurveyetc.)thathindersplanning.

• Moreover,householdpollutionfromsmokyfiresandkerosenelampsisamajorcauseofhealthcomplications, particularly respiratory and eye diseases. According to the World HealthOrganization (WHO)estimates,householdpollutioncauses14,300deaths inKenya107annuallyanddirectly impact thehealthof14.9millionKenyanswith themajorityof theaffectedbeingruralwomenandchildren108.

3.4.4 HighImpactInitiativesforAchievingtheOverarchingNexusObjectives

o Policy review and enforcement and approaches that cut across the nexus issues thatwillcapture gender disaggregated information and awareness raising, policy integration(normative,organizational,andprocedural)anddevelopanenergysector land-useplantoreducecompetitionandclarifywheretolocateinfrastructure.

o Harmonization of legislation and policies and better enforcement of laws, standards andguidelinesisrequiredtoaddressnexusissues.Institutionalstrengtheningandharmonizationofinstitutionalresponsibilitiesatthenationalandcountygovernments.

o Gender mainstreaming which will involve incorporating gender impact assessments intoexisting planning tools, incorporate full economic opportunity costs associated with timespentbywomenusingunimprovedcookingmethods.

o Stakeholders’ involvement in implementation of the AA, not only to mitigate conflictsbetween the sectors but for regular dissemination of information and training of targetgroups (e.g. training of farmers on technical alternatives in agriculture such as efficientirrigationsystem,rainharvestingetc.).

o Researchanddevelopmentforinnovationsolutionstoaddressenergyandfood,energyandwaterandgendernexus.

o Trainingoffarmersontechnicalalternativesinagriculturesuchasefficientirrigationsystem,rainharvestingetc.

o The national green house project, agro-technologyfocusing on agriculture with limitedwaterresourceandcontrolledenvironmentinallthe47counties.

o This is a National Economic Program aimed at putting one million acres of land underirrigatedagriculturewithintheMTP2

107GlobalAllianceforCleanCookstoves-KenyaCountryActionPlan108GlobalAllianceforCleanCookstoves-KenyaCountryActionPlan

60


o Energy and Women’s health: Energy is a critical enabler for vital primary health careservices,especiallyduringmaternalandchildbirthemergencies.Withoutelectricity,mothersin childbirth are particularly at risk.Whilematernalmortality has declined in the past 20years,theinternationalcommunitystillhasfarthertogotosavelivesandensurethathealthworkers are given the tools and facilities they need to provide effective medical care.Electricity is needed for basic lighting, vaccine storage, access to cleanwater, equipmentsterilization, and to power other essential equipment. Yet many clinics, hospitals, andworkersdonothaveaccesstothepowertheyneed:TheWorldHealthOrganizationrecentlyfoundthatupto58percentofhealthcarefacilitiesinSub-SaharanAfricancountrieshavenoelectricity at all110. Other health impacts of the energy sector include the reduction inwomen’s drudgery, and improvement in food quality and nutrition frommodern cookingandrefrigerationsolutions;betterretentionofqualifiedstaffinremotehealthcentreswhichareservedbyelectricity;streetlightingmayimprovewomen’smobilityandhenceincreasetheir opportunities. In addition, access to affordable modern energy services can reducebothtimeandeffortspentinreproductiveandproductivelabour.Someofthedeliverablesofthishigh-impactopportunityinclude:

o Mapping themarket: Understand the existing gap in access to energy-dependenthealthcareservices(bothforpreventionandfortreatment).

o Securing evidence for guiding intervention design: Engage the health sector inassessingthegapinenergy-relatedservicescriticaltowomen’shealth.

o Supply chains andmaintenance:Developpublic-privatepartnerships to encouragegooddesignandmobilizefinancingforinstallation.

o Building local and national capacity: Establish appropriate system design,maintenance and repair requirements to train local electricians, mechanics andengineers.

o Public awareness on thebenefits of accessingmodern energyoptions to addressthe scanty knowledge of the linkage between traditional cooking methods andhealthimplications

o Advocacyandmedia:Mobilizepublic/privateenergysectorlinkageswiththehealthsector and catalyse support andaction for identifiedpolicies/investments to closethe energy gap in healthcare, as well as catalysing sustainable energy serviceinstallationsinmedicalclinics111.

109ThisisbasedonthelistofHIOsidentifiedbytheGlobalActionAgenda110 http://www.se4all.org/hio/energy-and-womens-health/ 111 http://www.se4all.org/hio/energy-and-womens-health/

61

o CleanEnergyMini-Grids,orself-containedsystems

o Developandimplementsmall-scalerenewableenergysolutionsforsocialservices

o Forhealthcareestablishments,streetlighting,andschools

o Address the energy andwater nexuswith solar and other technology options forenergy-efficientwaterpumpingandprovisionofpotablewater

o Universal adoption of clean cooking solutions, a goal that can be pursued under theumbrellaofGACC,althoughKenyaisonlyapartnercountry.

o Advocateforandeducateconsumersontheimportanceofhealth,environmentandgenderbenefitsofcleancooking.

o Energy, Water and food nexus.

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3.4.6 RiskandmitigationRisks

Mitigation

Responsibility

• Unreliable/Sub-standardtechnology,leadingtolackofconfidenceintheinterventionsduetoperceivedrisks,e.g.health,security

• Educationandawarenesstothebeneficiaries• Enforcementofstandards/wherenolocalstandardsavailabletodevelop

MoEPCSOsDevelopmentpartners

• Culturalbarriers-hinderingadoptionofinterventions

• Awareness-demonstratingbenefitsofinterventions;participatoryplanninganddissemination

MoEP,CSOsDevelopmentpartners

• Lackofcapacity/knowledge/skillsatthecountylevelespeciallyforthoseinchargeofenergydocketstoplanandimplementnexuspriorities(provideleadership)

• Actionagendatoincorporateplansforcapacitybuildingonenergyandothersectorsplanningatcountylevel

• SensitizeCountygovernmenttoallocateresourcesforcapacitybuildingonenergyplanning/nexusissuesatcountylevel

• MoEPtochampioncapacitybuildingofcountygovernmentsthatincorporatesnexusissues

MoEP,CSOsDevelopmentpartners

• Lackoffinanceatthecountyleveltoimplementtheplannedenergynexusissues

• Innovativefinancingmechanisms,e.g.PPP’s• Mobilisingcommunityinitiatives-Energycooperativesmodel-fundedby

counties–participatoryplanningandimplementation• Encouragingcross-sectoralfinancialsupportfornexusissueswithincounties

MoEP,CSOsDevelopmentpartnersPrivatesector

• Somecountiesmaylacksubstantialenergyresourcestosupportplanningandimplementationtoaddressingenergynexusissues

• Involvecountiesingridinfrastructureinitiatives-funding/policytosupportthis;Participatoryplanninginvolvingcommunity-seekfundingtoenhancethis;segmenteddistributionsystemsforotherareasandaddressingidentifiedneeds

• Participatorydevelopmentofresourceswithinthecounties

Government,CSOsDevelopmentpartners

• Politicalinterference • Inclusiveimplementation/involvementofallstakeholdersintheawarenesscreation

• Crosssectoralplanningandengagement

Government,CSOsCommunity

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3.5 ENABLINGACTIONAREAS

Energy policies are quitewell developed in Kenya; however, there are some areaswhich require

furtherdevelopment, particularly, thebiomassandoff-grid sectors. In addition, there is a general

needtoimprovetheclarityintermsofenforcementandoverlappingwithothersectorspoliciesas

wellastoimprovegovernanceandinteractionbetweenallthestakeholders,includinggovernmental

institutions, donors and civil society. National coordination to monitor the implementation of

policiesandstrategies,developeffectiveandcomprehensiveplanninganddefineadequatefunding.

3.5.1 EnergyPlanningandPolicies

Areasthatrequirefurtherdevelopmentarethebiomassandoff-gridsectors.Inaddition,thereisa

general need to improve the clarity in terms of enforcement and overlapping with other sector

policies aswell as to improve governance and interactionbetweenall the stakeholders, including

governmental institutions, donors and civil society. Part 2 of the Fourth Schedule of the Kenyan

Constitution (2010) provides for devolvement of functions to county governments. It states that

County Governments shall be responsible for planning and development energy sector which

include preparation of county energy plans, incorporating petroleum and coal, renewable energy

and electricitymaster plans, physical planning relating to energy resource, provision of land and

rights ofway for energy infrastructure, regulation and licensingof retail supply of petroleumand

coalproducts.RolesofCountyGovernmentintheenergysectorareelaboratedinthedraftNational

EnergyPolicy2015.

CriticalAreas

• Inadequateeffectivecommunicationmechanismbetweencountyandnationalgovernmenton

energyplanning,implementationandmonitoringasmostofthesefunctionsarestillcentralised

by national Government Agencieswith limited intervention from county authorities and other

localstakeholders.

• Un-developed off grid and bioenergy strategy to guide decentralized system deployment and

biomassutilizationatbothNationalandCountylevel.

• Limitedstatisticaldataonprogressmadefromthepolicyinterventions.

• In adequate impact for NEMA as the Designated National Authority (DNA) for the Clean

Development Mechanism (CDM) on the banking sector and limited understanding on carbon

trading.

ActionsNeeded

• Form a national coordination committee to monitor the implementation of policies and

strategies, developeffective and comprehensiveplanninganddefineadequate funding for the

nationalandcountygovernment.

• Comprehensiveapproachtodevelopmentofstandardsandregulations

o Standards for several sustainable energy-related technologies need to be developed.

Whereas the Energy Regulatory Commission has begun development of regulations,

64

this effort requires a comprehensive approach encompassing all related standards,

technicalregulations,educationandenforcementframework.

• Fiscalandmonetaryinterventions

Development of wholesome fiscal and monetary briefs by the Energy Institute (once

established)thatwould:

o Assist institutions such as the Kenya Revenue Authority and the Central Bank of

Kenyacreatethedesiredtaxregime(rebates,exemptionsandotherincentives)and

to develop monetary policy, regulations and incentives that can stimulate the

financialsector inKenyatoraise longtermsustainableenergyfinanceandtoavail

projectfinancetoprivatesectorenergyprojectdevelopers.

o Assist NEMA, Treasury and stakeholders in the development of a carbon finance

instrument.

• Developandapproveoffgridstrategyandbioenergystrategytofosterthedevelopmentof

mini-grids,micro-gridsandbioenergytoencourageprivatesectorparticipation

• Formulateandenforceframeworkforcharcoalindustrythatincludesregulationofcharcoal

productionandincentivesforsustainableproduction.ThependingForestryActshouldbea

keypartofthisframework.

• FormulateLPGpolicyandappropriateincentivestosupportthegrowthofLPGadoption.

• Datacollectionandtrackingofprogressmadeagainsttargetswillbeessentialtobeableto

monitortheeffectivenessofpolicyactionsandmakeanycorrectivechanges.Thefollowing

actionsshouldthereforealsobetaken:

o Annual assessment of energy targets in three main areas of access, RE and

efficiency.

o Regular detailedmapping to assess status of all energymarkets includingmarket

actors,supportinginputs,servicesandfinance,andenablingenvironmentfactors.

• Developalternativecookingfuelsstrategywithcleargoalsandtargets(bioethanol,biogas,

solarcookers,vegetableoils,briquettesandagriculturalwaste).

• Strengthening of the energy policy, legislation and strategic planning. Specific energy

policiesthatneedtobeentrenchedinthepolicyandregulatoryframeworkinclude:

o Policy to guide Sustainable Energy Fund (SEF) fund-raising efforts, including

obligatingSEFbudgetaryallocationsbothatnationalandcountylevels.

o Policy to guide integrated sustainable energy planning, including inter and intra-

ministerialplanninganddecentralisedbycoordinatedenergyresourceplanning.

o Establishmentofanintegratedapproachinenergypolicydevelopmentandplanning

taking into consideration the new Government and political structures in

accordancetotheconstitution.

65

o Thetransmissionanddistributionprovisions intheActrecognisethat“conveyanceofelectricalenergytoorfromanytransmissionordistributionnetworkispossible;aframeworkforwheelingonthedistributionnetworkshallbedeveloped.

3.5.2 BusinessModelandTechnologyInnovation

ThereanumberofbusinessmodelsandtechnologyinnovationbeingimplementedinKenyawhich

include:

• PublicPrivatePartnerships(PPPs)modelsforpowergeneration,

• InnovationssuchasPayAsYouGo(PAYG)

• Energyaccesssolutionse.g.leasingifany,Resultbasedfinancingbeingimplementedinthe

minigridbyGiZ,

• Polices encouraging R&D, research institutions, Energy service companies that work with

communities, how do project developers engage with communities- community

engagementmodels- examplese.g. theKitonyoniCommunity SolarMicro-grid inMakueni

countyandNgerechCommunitySmallhydropowerinMurang’acounty

In thedevelopmentofprojects, thedevelopershavebeenchallenged in raising finance, the local

bankingsectorinvolvementinenergyprojectfinancingislimited.

CriticalAreas

• Dependenceondonorfundingforcriticalenergysectorinitiativessuchasfinancingofpilot

projectsparticularlyofsustainableenergyprojects

• Limited involvement from the local banking sector in financing small and medium size

energyprojects

• Limitedcapacityofdeveloperstoraisefinanceforsmallenergyprojects

• The transmission and distribution provisions in the Act recognise that “conveyance of

electricalenergytoorfromanytransmissionordistributionnetworkispossible”;wheeling

tariffs in thetransmissionnetworkareaccordinglyprovided for in theexistingscheduleof

tariffsandrates,butthereisnotyetaframeworkforwheelingonthedistributionnetwork.

ActionsNeeded

• EstablishmentofKenyaEnergyDevelopmentFund(KEDF)withtheaimtostreamlineaccess

toearly-stageprojectfinanceintoasingleprogramme.Theconceptshallbeelaboratedand

establishedundertheMoEPastheprimarymeanstoco-financestrategicdomesticenergy

projectswithpublicresources.Itsmainpurposewouldbetoprovideearly-stageseedcapital

andequity togetsuchprojects to thestageofcommercialbankability, thereby leveraging

moreprivatecapital into thesector.Ministry thatwilloutline therationale, feasibilityand

optimal governance and institutional arrangements shall prepare a concept note for the

66

KEDF. This can draw on the wide range of experiences (e.g. development partners) of

supportingfinancingprogrammesinKenya.

• Createfavourableenvironmentforprivateinvestorsinthesector,Governmentwilldevelop

a coordinated plan to streamline investment procedures, guarantee stable and positive

returns, and reduce perceived and real risks to energy infrastructure investment. Among

thesemeasures,includeupdatingtheinvestmentcode,developingadedicatedenergyfund,

andclarifyingtherulesandmodalitiesofengagementforPPPs.

• Strengtheningmarketinstruments

o Establishandimplementaframeworkforwheelingonthedistributionnetwork.

o Projectpre-financefacilitiesthroughfinancialinstitutionsandprojectdevelopers.

o ImprovingtheexistingstandardPPA.

o ImprovingtheexistingFITpolicy,wheresomeworkisalreadyongoing.

o Set standards and regulations on net metering, where some work is already

ongoing.

• Supportforformationofenergyservicecompanies.

3.5.3 FinanceandRiskManagement

CriticalAreas

• Dependenceondonor funding for critical energy sector interventions suchas financingof

pilotprojectsparticularlyofsustainableenergyprojects

• Low involvement of the local banking sector in financing small and medium size energy

projects

ActionsNeeded

• EstablishmentofKenyaEnergyDevelopmentFund(KEDF)withtheaimtostreamlineaccess

to early-stage project finance into a single programme as explained in 4.5.2 above.

DevelopmentofaSustainableEnergyFinance(SEF)sustainabilitystrategy

o The SEF sustainability strategy would capture the critical path for financing clean

energy projects, including energy resource needs/sources, required standards,

marketdynamics,capacitybuildingandfinancingneeds.Thisactivitycanbespear-

headed by the Energy Institute (once in place) in collaborationwith stakeholders,

andimplementedbytheKEDF.

• AppointaKenyaNationalSEFFocalPerson

Thereisneedforafocalpersontostrategizeon,adviceonandfacilitateSEFinKenyaatthe

national and sub-national (County) levels. TheSEF focalpoint canbebasedat the SE4ALL

Secretariat,undertheSE4ALLFocalpoint,withamongotherfunctions:

o Developmarket instruments such asmarketable securities and services related to

mobilisationoffinanceandmanagementofenergy-relatedinvestmentfunds.

o Deepen financial sector and insurance sector involvement in the energy

investments.

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3.5.4 CapacityBuilding

CriticalAreas

• LimitedhumanresourcesatMoEPandotherkeyenergyrelatedinstitutions.

• Limited awareness by the public to identify and understand the benefits of quality

renewableenergytechnologiesandequipment.

• Limited capacity from entrepreneurs to develop technologies adapted to the local

environment.

ActionsNeeded

• Establishment of Sustainable Energy for All Advisory Board with crucial mandate directly

affecting the flow of finance and investment in sustainable energy need their capacities

enhancedtoplan,formulaterelatedpoliciesandmobilisefunding.Establishmentofnational

Energy Institute as proposed in the draftNational Energy Bill 2015.would be appropriate.

The Energy Institute can have linkages to Universities and other research institutions like

KIRDI. It would continuously build the sustainable energy finance capacities of, among

others:

o Parliament,whichhas responsibility for theapprovalofbudgetaryallocations.The

ParliamentaryDepartmentalCommitteeonEnergywouldbetheappropriateentry

point.

o ConstituencyDevelopment Fundmanagers andCountyGovernors, responsible for

allocationofdevelopmentfundsatthelocallevels.

o TheMinistryofEnergyandlineministriesstronglyinfluencedbysustainableenergy,

including Ministry of Environment, Ministry of Agriculture, Ministry of

Industrialisation,MinistryofEducationandMinistryofFinance.

o RevenueandfinancialsectorauthoritiessuchasKRAandCBK.

o Countiestosupportlocalinstitutionstooffercoursesinenergy

• Strengtheningcleanenergysectorassociations

• InstitutionssuchasCCAK,SEAF-K,ABC-KandKEREA,whichadvocate forcleanenergyand

help sectorwidenetworking and collaboration canbeuseful instrumentsof both change,

implementationofpolicyandmarketdevelopment.Theyneedtobespecificallysupported

and strengthened through budgetary allocations at national level. Institutional capacity

development to close the gap between responsibilities/commitment and management

capacity:

o Thecapacityofgovernmental institutions,namely,MoEP,REAandERC, shouldbe

developed toassist in the implementationofpolicies, strategies,programmesand

projectmanagement

o Staff of local banks should be trained in order to better understand and become

morecomfortablewhenlendingtoenergyprojects

o Assistorganisationsindevelopinggendermainstreamingtools

o County energy planning capacity should be improved for increasing coordination

and planning of energy related activities, investment strategies and monitor the

progressofSE4ALLandotherenergyrelatedinterventions.

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3.5.5 AwarenessandKnowledgeManagement

• Develop amethodology and implementation plan for creating andmaintaining the SE4All

EnergyData Base.Design of data collection and processing process should apply rigorous

methods (such as individual programme evaluations, cross-national quantitative studies,

systematizedexpert interviews, and sectorial surveys) andbe capableofproducing timely

data suitable for Kenya’s implementation of SE4All’s GTF and country reporting to the

InternationalEnergyAgency’s(IEA).Itwillalsoencompassthe:

o Biomass Information System (BIS): Themajor purposes of the information system

are to: (i) Keep track of the new biomass energy technologies and their success

rates; (ii) Support continuous updating of the strategy; and (iii) Provide timely

informationfordecisionmakingandplanning.

o Renewable Energy Resource System (RERS): This will be the umbrella for the

differentrenewableenergyresourcesassessmentandmapping,inordertoconfirm

the potential at specific sites and accelerate project development by the private

sector.

o RETDataBaseandtechnologyvendors.Thisdatabaseshouldintegrateinformation

ofvendorsoftechnologies,systemsandsolutionsbytypeoftechnologyandservice

provided.

3.5.6 CrossCuttingEnablingActions

• SE4Allandregional integration:Powerpoolingandcross-borderprojectsandprogrammes,

standardizationandother infrastructureguidelinesandstrategiesdeveloped throughEAC.

TheHeadsofStateof theEACCountriesagreedonaCross-BorderElectrificationPolicyat

bothMediumvoltageandhighvoltage112.

• Updatea“onestopshop”withingovernment:Toprovideclearandtimelyinformationand

supporttoinvestorsinterestedindevelopingEA/EE/REprojects.

• Establish & refine fiscal incentives for RE/EE/EA project development: To reduce costs of

technologyuptakeandattract investments.Thesecouldbeinformoftax/VATexemptions

andcreditsenhancement,taxholidaysorspecializedgrants.

• Commonfundingmechanisms-greenfundscope:Tobuydowncostsofcapitalandprovide

forequity/debtborrowingsbyinvestorsandprojectpreparationwhereneeded

• Enhance the institutional structure and capacity for RE/EE/EA planning and regulation:

When introducingSE4All Initiatives, institutionsneedtobeequippedtodealwiththenew

SE4ALLparadigmandallocateresourcesfortheinitiatives.

• Mainstream gender issues into energy policy and planning: Inclusion of gender

considerationisimportantinalltheinitiativesandisalsoinlinewiththeAfricaSE4AllHub

Guidelines

• Datamanagementsystemsforenergyplanning:Undertakebaselinestudies toobtaindata

forplanning.

• Landreform:Streamlineissuingoflandpermitstoprojectdevelopers.

112 TheEACCross-BorderPolicy,2014

69

4 PARTIII–COORDINATIONANDFOLLOW-UP

4.1 THEPROCESSOFDEVELOPMENTOFTHEACTIONAGENDAANDINVESTMENTPROSPECTUS

The development of the Action Agenda and investments prospectus involved all the keystakeholders TheprocessofdevelopingtheAA/IPwasconductedinsixkeystages.

Stage 1 included literature review and interactions with MoEP and key stakeholders to enableidentification of initiatives underway (or already undertaken) on which this AA/IP developmentcouldbebuilt.ThiswasprovidedforattheKick-offmeetingandattheCoordinationmeetingwheretheInceptionReportwasdiscussedwithkeystakeholdersfrompublic,privateandcivilsociety.Stage2 involvedbilateral consultationswithpublic, civil,privateanddevelopmentpartners togetinputsonrequiredpriorityprojectsandreformsareasforconsideration intheAA/IP.ConsultationwasenhancedbytheformationoftheSE4ALLTechnicalTeamandSE4ALLTechnicalCommitteeasworkinggrouponthedevelopmentofAA/IP.

i) Technical Team: This was the core team for the development of the AA and IPcomposedofateamofeighteenmembers.Therepresentationofthisteamwasasfollows: Government-Ministry of Energy and Petroleum; Consultant; DevelopmentPartners-United Nations Development Programme, SNV and WWF; Civil SocietyOrganisation-Practical Action; Private sector-Kenya Renewable Energy Association(KEREA)andKenyaAssociationofManufacturers(KAM).Theteamheldmeetingsonmonthly basis to discuss the development of the AA and IP in details chapter bychapter.

ii) TechnicalCommittee:Thisisanexpendedteamismadeupmorethan40membersdrawnfromgovernment,private,developmentpartnersandthetechnicalteam.Thecommittee,withwiderrepresentationensuredthatthedevelopmentoftheAAandIPgainwideracceptance.TheteamreviewedtheAAandIPdraftspreparedbytheTechnicalTeamandaddedtheirinputs.

Stage3involvedgroupstakeholderworkshopsofprivatesector,publicsectorandcivilsociety.Theworkshop stakeholders reviewed results of the stocktaking, gap analysis, and contributed theirinputson;

(i) Reforms required to create a conducive enabling environment for private and publicinvestmentintheenergysector;

(ii) Identification of priority projects to meet SE4ALL goals for Kenya. In this stage, eachgroup of stakeholders had a chance to analyse existingpolicies/plans/strategies/programmes, related gaps and each provided suggestions onpriorityprojectareasandrequiredreforms.

Stage 4 involved training of Kenya stakeholders to develop the AA and IP documents and in theprioritizationofprojectandreformsareasidentifiedinstages1-3.Stage5involvedcountyawarenessforumsonSE4ALLinitiativeswithfocusonformationofSE4ALLCountyTechnicalCommitteestooverseetheimplementationofAA/IPatcountylevels.Stage6involvedacloseconsultationwiththeMoEPandenergysectorplayerstoagreeonthefocusofpriorityprojectareasandreforms.TheprocessofdevelopmentoftheActionAgendainAnnex5.

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4.2 ACTIONAGENDA’SIMPLEMENTATION

TheActionAgendabeingtheoverarchingGovernmentstrategydocumenttowardstheachievement

ofsustainableenergyforallcitizensofKenya.Itformsthereferencepointfordevelopmentofother

strategydocumentsasfarasenergyaccess;renewableenergyandenergyefficiencyareconcerned.

ItsynergizeswiththeCountry’sVision2030,andprovidestheframeworkthatguidesplannersand

other stakeholders in their own strategies and engagement with the Kenya sustainable energy

sector.

A clear implementation framework for the AA is therefore critical to the achievement of the

Country’sSE4Allobjectives. ImplementationofKenya’sSE4AllActionAgendaishingedonfourkey

pillars:

1. Institutional structures

2. Programming of actions

3. Mobilization of resources

4. Effective monitoring and evaluation

4.3 INSTITUTIONALSTRUCTURES

4.3.1 Structure

Kenyahasastronginstitutionalframeworkthatissupportiveofthecountry’sSE4Allagenda,headed

by MoEP. MoEP is the focal point for Kenya’s SE4All Initiative, a function domiciled within the

DirectorateofRenewableEnergy(DRE).

TheteamcomprisestheDirectorforRenewableEnergy,theDeputyDirectorforRenewableEnergy–

alsotheCountryFocalPointforSE4AllInitiative,andfivetechnicalofficers.MoEPcollaboratedwith

keystakeholdersintheSE4Allprocess.

4.3.2 ProposedNationalSE4ALLCoordinationStructure

TheSE4AllfunctionattheMoEP,ledbytheCountryFocalPoint(CFP)willbetransformedintothe

“KenyaSE4AllSecretariat”(“KSS”).KSSwillbeaseparateunitwithintheMoEP,withitsoperational

thebudgetary.MoEP,throughtheDRE,willappointaSE4AllNationalCoordinator(“SNC”)tohead

the KSS, and shall report to the DRE. A team of technical staff assigned by MoEP and relevant

administrativestaffwillsupporttheSNC.Altogether,thisteamwillcomprisetheKSS.

KSSwillbesupportedandguidedbytheSE4AllAdvisoryBoard (“SAB”),amulti-stakeholdergroupdrawnfromwhatiscurrentlytheTechnicalCommitteeforSE4All.ItwillbechairedbythePrincipalSecretaryinMoEP,withtheDirectorforRenewableEnergyastheSecretary.TheSNCwillbeanexofficiomember,workingwiththeDREtoproposetheagendaandtabledocumentsfordeliberationbytheSAB.TheSABwillcomprisediversestakeholderrepresentationsstyledsimilarlyastheSE4Allstakeholdergroups:public,civilsociety,private,researchinstitutes.Guidelineswillbedevelopedfortodirecttherolesofvarioussub-groupsoftheSAB.

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TheSABwillbedividedintofourthematicSub-groups,representing(i)Finance–mobilizationandconceptdesignsforimplementation;(ii)Initiatives–initiatingandsupportingprogrammesandprojectsintheSE4ALLgoalrealizationpipeline(iii)Policy,regulationandcapacitybuilding(iV)Monitoring,Evaluationandknowledgemanagement.In its day-to-daywork, the KSSwill be supported by stakeholder groups convened by the SNC to

assisttheKSSonspecifictechnicalmatters,akintotheTechnicalTeamthathasassistedtheFocal

Point to produce the AA and IP. It is expected that the close relationship held during the AA

development process between the CFP/MoEP and key stakeholders will continue during the

implementationphasetoensurethatthereisaclearcoordinationandcompatibilityofeffortsinthe

energysector,whichshouldconsolidateandacceleratetheprogresstowardsKenya’sSE4Allgoals.

The formation of KSS will increase the capacity of the GoK to improve coordination of activities

across interventions funded and implemented by key stakeholders. Because of this process, it is

expectedthattheharmonizationandintegrationofstrategiesandprogramsundertheSE4AllAAwill

befacilitated,andkeyimplementationchallengeswillbemitigated.Thisisespeciallyimportantfor

addressingthechallengesassociatedwithdevolutionandtheoperationalizationoftheAA.

ThisadministrativetransitionintotheKSSwillbescheduledinamannerthatensurestheSecretariat

is in place and resourced in time for involvement in the next (third) Vision 2030 Medium Term

PlanningCyclein2018.ThestructureisschematizedinFigure7.

Figure7:Proposedstructure

MINISTRY OF ENERGY AND PETROLEUM

• Champion SE4All Agenda

• Create and effect Policy

Directorate of RE National SE4All Coordinator SE4All Secretariat

Prepare/guide SE4All

related budgets

Implement/oversee

implementation of

SE4All Actions

SE4All ADVISORY GROUP Representatives from: Inter-Ministerial Committee (Nexus) on

SE4All, Council of Governors, public sector,

civil society, private sector research institutes

Role: Advice on policy, planning, business

models, technology, innovation, capacity

building, knowledge sharing, national/county

liaison

SE4All SUPPORT WORKING GROUPS i) Finance-mobilisation and concept designs

for implementation;

ii) Initiatives-Initiating and supporting

programmes and projects in the SE4All

goal realization pipeline

iii) Policy, regulation and capacity building iv)

Monitoring, evaluation and knowledge

management

SUPPORT FROM GLOBAL THEATIC HUBS UNEP DTU Centre-EE, IRENA-RE, UNDP-

Energy Access, WB-Knowledge and

Capacity Building, TERI-Global Finance

Group

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4.3.3 IntegratedapproachbetweenNationalandCountyGovernments

FormationofSE4Allengagementframeworkisproposedtocoordinatesmoothflowofinformationon matters of energy among the stakeholders at both National and County levels. The keystakeholdersintheengagementframeworkareNationalGovernment,CountyGovernment,CountySE4All Technical Committee, community (research institutions, civil society, financial institutions,privatesectoranddonoragencies).

MoEP will support the establishment of SE4All County technical committee to oversee the

implementation of the SE4All initiative at counties and provide linkage with the national

government.MoEPwillsupporttoestablishmentofEnergycentresinallthecounties

Harmonizing SE4All ActionAgendawith County IntegratedDevelopment Plans (CIDPs)will ensure

fasterdeliveryoftheSE4AllKenyaobjectives.Countieshavepublished“CountyProfiles”containing

geographic, resources, economic and social data of the counties. These documents provide basic

information to county governments in preparing their County Energy Plans113. CIDPs are used to

guidethecountyMediumTermExpenditureFrameworkandannualbudgets.TheSE4Allobjectives

willbeincorporatedintotheCIDPs.TheActivitieswillinclude:

• SensitizecountiesonSE4All(countyengagementprocess)involvingrespectivestakeholders

workingonexistingprogrammes;

• Define their energy needs in the counties (energy needs assessment) including mapping

energyresources;

• Buildcapacityoncountyenergyplanning,understandingoftheenergyissuesasperministry

ofenergyandpetroleumguidelines;

• PromotionofPPPsatthecountylevel;

• Incorporatingdecentralized/distributedenergysolutionsinthecountyenergyplans;

Theenergyplansshall;

• Takeintoaccountthenationalenergypolicy;

• Serveasaguideforenergyinfrastructureinvestments;

• Takeintoaccountallviableenergysupplyoptions;and

• Guidetheselectionoftheappropriatetechnologytomeetenergydemand

Annex9presentsproposedframeworkat thenational level inMoEPforevaluatingandapproving

countyenergyplansforimplementation.

113This isarequirement inthelawwhichpointstotheneedtohaveabodythatdevelopsguidelines,vetsandapprovescountyenergyplans.

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4.4 PROGRAMMINGOFACTIONS

TheAAwasdraftedatatimethatVision2030’sMediumTermPlan(MTP)2isbeingimplemented.

TheintentionoftheGoKistointegratethestrategicapproachoftheSE4All intotheMTPprocess;

hence,someofthetargets,especiallyenergyefficiency,wouldbesubjecttotheassessmentofthe

progression of theAA implementation,whichwill take place as part of theMTP 3 (2018 – 2022)

designprocess.Hence targets,will be supportedbypriority actions and investmentopportunities

thatwillfocusontheshort-term,ortransitionalperiod,asadditionalactionsandrelatedinvestment

prospectuswillbeaddedaspartoftheoperationalizationofafullySE4AllcompatibleMTP3.

With this in mind, the realization of Kenya’s AA’s Goals depends on the deployment strategy,

institutionalsupport,MERandreviewprocessofthisAAthrough2030.

4.4.1 ImplementationMethodology

TheAAisdevelopedatatimewhen:

• Thecountryisimplementingthenewconstitutionwithenergyplanningbeingdecentralized

tothecounties,

• Lastmileconnectivityislaunchedwiththeoverallgoalofachievingover70%connectivityby

2017inKenya.

• The council of governors has designated an office, which liaises with the National

governmentoncountyissuesincludingenergyplanning.

Theintegrationoftheseinterventionswiththecurrentpolicyandregulatoryframeworkandtheon-

goingreviewoftargetsandplanspresentsomechallengestotheearlystagesofimplementationof

theAA,amongthem:

• Interventionsmayoverlapbetweenthem,likewithREMPandSREP;

• Keystakeholdersvaryatleadingandimplementingrolesasindicatedbelow:

Civil Society Organisations: Practical Action Eastern Africa is the SE4All CSOs representative atAdvisory Group for the proposed SE4All implementation and coordination structure. Civil societyorganizations, community-based organizations, NGOs, advocacy groups and donor partners alsohavekeyrolestoplayintheachievementsofSE4Allobjectives.Theirrolesarediverseandcriticalforcontinueddevelopment,implementationandmonitoringoftheSE4Allagenda.

Civilsocietycontinuestoplayapivotalroleinprovidingenergysolutionstothemajorityofpoorandmarginalized population without access to clean energy sources and/or grid electricity. The CivilSocietyisalsoactiveinbothbroadbasedparticipationinenergysectorpolicy/planningandalsoondevelopinganddeployingrenewableenergy/energyaccesssolutions.

PrivateSector:PrivatesectorisplayingandwillcontinuetoplayacriticalroleintheimplementationoftheSE4Allobjectives.ThegovernmentofKenyahasderegulatedtheenergysectorthusallowingtheparticipationoftheprivatesector.Privatesectorisactivelyengagedinallsectorsofenergy.TheGoKcooperateswiththeKenyaAssociationofManufacturersinpromotingRE/EEinindustry.Thereis however a required institutional framework to cater for EE activities in the other sectors. TheKenyaPrivateSectorAssociation(KEPSA)representsprivatestakeholdersintheSAB.

ThepowersectorisderegulatedopeningupopportunitiesforIndependentpowerproducers(IPP’s)toparticipate inpowergeneration including for renewableenergyunder theFeed-inTariffPolicy.IPPsareprivatecompanies,whichgenerateelectricityandsell it inbulk toKPLC.Currently, sevenIPPsareoperatinginthecountrycontributingabout30%oftheeffectivegeneratingcapacitytothe

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national grid. The Energy Act also allows private distribution companies to buy bulk power frompowergeneratorsandsupplydirectlytocustomersincompetitionwithKenyaPower.TransmissionnetworkisbeingopenedforsuchpowertradingthroughKETRACO.

• ItisexpectedthatthetransformationoftheSE4AllteamatMoEP,ledbytheCountryFocal

Point(CFP) institutionalizedasKenya’sSE4ALLSecretariat,will increasethecapacityofthe

GoKtoimprovecoordinationofactivitiesacrossinterventionsfundedandimplementedby

key stakeholders. Because of this process, it is expected that the harmonization and

integration of strategies and programs under the SE4All AA will be facilitated, and key

implementationchallengeswillbemitigated.

4.4.2 ImplementationTimeline

Consideringthat,thecurrentscenarioisledbytheearlystagesofthepromotionofREA’sIPandas

Kenya integrates SE4ALL into its national planning, the trajectory towards the country’s SE4ALL

Goalsisinformedbythefollowingphases:

Transition (2015 – 2017). During this period, the country continues with its currentstrategiesandstartsanationaldialoguetowardtheadaptation,updateandalignmentof

theexistinginterventionsunderthecountry’sSE4Allagenda.Duringthisperiod,allnew

strategiesandinterventionswillhavetobeconsistentwithKenya’sSE4AllAA.

Phase I (2018–2022).SE4AllbecomesthecornerstoneoftheMTP3planningprocess. In

thiscontext,theAAwillbere-assessedbyitsprogressandadditionalinterventionsand

IP(s)shouldbeincorporatedasneeded.

Phase II (2023 – 2027). The AA and the MTP 4 will be reassessed by its progress and

additionalinterventionsandIP(s)shouldbeincorporatedasneeded.

Phase III (2027 – 2030). The AA and the MTP 5 will be reassessed by its progress and

additionalinterventionsandIP(s)shouldbeincorporatedasneeded.

The following timeline presents a proposed sequence of key activities and interventions to be

implementedupontheadoptionoftheAA.

Table18:PotentialAAImplementationSequence

Activity 2ndhalf

2015

1sthalf

2016

2ndHalf

2016

SE4ALLSecretariat institutionalisation,definethe implementationandoperationalprogramme,andsecurefundingforpersonnel,equipmentandexecutionofactivities

TAassistancesupporttotheSE4AALLSecretariatatMoEP

NationalDialogue,includingsub-nationalstructuresCountyGovernments,inpreparationtothetransitionoftheAAandIPintotheMTP

IntegrationoftheAAandIPintotheMoEPFive-YearStrategyPlan

Institutionalandhumancapacitybuildingofgovernmentinstitutionsandprivatesectororganisation

Designandimplementaprogrammeforinstitutionalandhumanresourcesatcountyleveltoincreasetheroleofcountygovernments

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Activity 2ndhalf

2015

1sthalf

2016

2ndHalf

2016

onlocalandnationalenergyplanningneedsandmonitoringEstablishmentofKenyaEnergyDevelopmentFund(KEDF)withtheaimtostreamlineaccesstoearly-stageprojectfinanceintoasingleprogramme

Developmentofamini-gridstrategytoimproveaccesstoelectricity

Developmentofbioenergystrategytoimproveaccesstomoderncooking

ImprovedmarketdataforplanningandinvestmentpurposesatMoEPbydevelopingaSE4ALLdatabase-Designandrollout

Development,enactandrolloutafullregulatoryandenablingenvironmentframeworkforenergyefficiency

4.4.3 Kenyan’sActionAgenda’sCoordination

The SE4ALL process in Kenya includes the creation of the SE4All Advisory Board to support the

designoftheAAandtheIP.ThemembersofthisCommitteerepresentgovernmentagencies,donor,

CSOs(inclusiveofprivatesector)andNGOsrepresentatives.

Once the AA is validated and adopted, this Committee should remain in place and should meet

regularlytoprovidesupportandadvicetotheSE4AllSecretariat.

TheSecretariatistheAA’sleadadvocacyandmanagerialunitthat:

• Will monitor SE4All related projects and studies, which should remain under the

responsibilityoftherelevantGovernmentAgenciesandinstitutions.

• Takestheresponsibility forrealizingSE4Allgoals, implementingthe IP(s)associatedtothis

AA,andapplyingtheSE4AllMonitoring.

• Createsandincreasesawareness.

• IsthefocalpointforexchanginginformationwiththeSE4Allglobalinitiative,especiallywith

theSE4AllGlobalFacilityTeam,theSE4AllAfricaHub,andtheSE4AllThematicHubs.

• Presents for review by the SE4All Coordination Committee and GoK authorities draft

modifications to the AA and proposes any other “mid-course” adjustments that may be

neededtokeepKenyaonitspathtoachieveitsSE4ALLgoals.

4.5 MOBILIZATIONOFRESOURCES

TheSE4AllNationalCoordinator(NC)willworkwithanationalFinanceWorkingGroup(FWG).TheFWGwillberesponsibleformobilizingthelocalfinancialsectortosupportAAimplementationandmobilizefinancialresourcesfromvarioussourcesincludingPhilanthropic,developmentpartnersandother sustainableenergy supporting sourcese.g. carbon financing. The FWGwill also recommendthe directing of financial resources to priority project areas through some formof fundmatchingsystem.ThiscouldbeinformofaSE4AllFundtohostvariousmobilizedfinancialresourcesthatcan

76

bedirectedtosupportthevariousRiskandFinanceManagementactionsproposedforenablingtheselectedpriorityareas.Somesourcestosupportenergyfundinclude114;

1. Contributionfromenergysectorplayers

2. Contribution from Treasury other than funds provided to public institutions for thedischargeoftheirmandates.

3. Raisingfundsthroughthestockmarket(bondsandbills)

4. Supportfromdevelopmentpartners

5. Recoveredassetsfromproceedsofcorruptionandeconomiccrimesintheenergysector

4.6 EFFECTIVEMONITORINGANDEVALUATION

4.6.1 GuidelinesDesigning and implementing aMonitoring, Evaluation andReporting (MER) system is an essential

task that will allow Kenya to track, assess and report progress on the achievement of expected

outcomesundertheSE4AllInitiative.TheMER,astool,allowsforidentifyingkeyissuesthatneedto

beaddressedtoensureaproperimplementationoftheAA.ItwillalsoallowtheGoKtoreviewand

update the AA in the future. The MER system will therefore comprise a Monitoring Plan, an

EvaluationPlan,andaReportingPlan.

4.6.2 MonitoringPlan

TheGOKwillapplytheGTFmono

4.6.2.1 GTFMonitoringFramework

TheGTFproposesguidelinesformonitoringeachSE4Allgoal,i.e.formonitoringtheprogressmadeon energy access (electricity and modern cooking), renewable energy and energy efficiency. Foraccesstoenergy,thekeycomponentsarepresentedinFigure8asintheGTF:

Figure8:KeycomponentsfortrackingaccesstoenergyundertheGTF

AsshowninFigure8theGTFproposedtotrackaccesstoenergyusingdifferent“levelsofaccess”orTiers.Usingamulti-tierapproach,it ispossibletotrackaccessnotonlyfromthe“yes/no”pointofview, which means that people have or do not have access, but also from a multi-dimensionalperspective where it is possible to track the several attributes associated to access, such asaffordability, quality, capacity (Watts), reliability, safety, efficiency, impact on health, etc. thusprovidingtheopportunitytoperformamuchmorein-depthanalysis(SeeAnnex10).

114NationalEnergyPolicydraft2015

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4.6.3 EvaluationPlan

The evaluation process consists of annual reviews of the progress made through the activities

conductedandperformanceachievedtowardsthetargetsthataresetunderKenya’sSE4AllAA.

The evaluation will ensure a broad and representative perspective on the achievements and

challenges in the implementation of Kenya’s SE4All activities, andwill allow the adequacy of the

adopted strategy tobe assessed tomeet the targets as plannedand take any corrective action if

needed. The evaluation should include the provision of recommendations for future monitoring

periodsanditisintendedtoinformthestakeholdersparticipatingintheimplementationoftheAA

offollow-upactionsrequiredtofurtherstrengthenitsperformanceandstrategicactivities.

Ingeneral,terms,thepurposeoftheevaluationactivitiesistwofold:

I. To contribute to improving programme effectiveness and delivery towards Kenya’s SE4All

goalsby2030byusingknowledgeandlessonslearntfromitsimplementationbackintothe

countryinitiative;

II. TocontributetooverallalignmentofstrategicactivitiesoftheAAandensurethatitremains

relevant to addressing country level objectives whilst also aligned to the global SE4All

Initiative.

During the annual SE4All evaluation, the designated SE4All Secretariat will review the resultsachieved in the current monitoring period in comparison to the baseline and the previous year:progressonactionsandtargetsmetasplanned inKenya’sAAusing theselected indicators. Itwillalsohelpidentifytheactionsneededforthefollowingyear.

4.6.4 ReportingPlan

Usingtheresultsoftheevaluationphase,thedesignatedSE4AllSecretariatwillreportonanannualbasisontheprogressandperformancetowardstheimplementationofKenya’sSE4AllAA.TheyearlyprogresswillbepresentedinaPerformanceAssessmentReport.Thereportmustclearlyshowthebaseline scenario and the progress made against the targets set. The annual report would beprepared in consistent manner with MTP cycle and shared with Stakeholders for awareness,socializationandpropercontributionsontheirpart.

4.7 FOLLOW-UPANALYSIS

There is a need for additional follow-up analysis in two main areas. Firstly, there is a need todevelop more detailed action plans with priorities, timelines and budgets in each of the mainthemescoveredbythedifferenttechnicalworkinggroups.Theseplanscanthenbeusedtomanageandtrackimplementationoftheactions.TheseplanswillintegrateactionsarisingfromtheSE4ALLAction Agendawith those in the energy sector strategic plan, and additional actions identified inotherstrategies.

Secondly, additional scenario analysis is required to assess the costs of different pathways to theSE4ALLgoals, and toexplore sensitivityof thegoals themselves tovarious sourcesofuncertainty.Theseincludetechnicaluncertainties(e.g.availabilityofdifferentsourcesofgeneration),aswellaseconomicandsocialuncertaintiessuchastheaffordabilityofdifferentsolutions,andthedegreeofregional integration of energy systems. In practice, the goals outlined in this Action Agenda areillustrative,andthegovernmentwillneedtokeepthesegoalsunderreviewandreviseasnecessaryinresponsetonewemerginginformationandasprogressmadebetweennowand2030.

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4.8 LINKINGTOINVESTMENTPROSPECTUS

TheActionAgendaisastand-alonedocumentthatprovidesaframeworkforachievingthenationalSE4ALL objectives. On a “global” level, it provides for interventions (policy adjustments, financialallocations,businessmodeldevelopmentsandcapacitybuilding initiatives) thatwill focusnationalsupportforenergyaccess,renewableenergyandenergyefficiency.However,asshowninFigure9,theActionAgendaprovidesforspecificmeasuresthatwilldriveparticularinvestmentsthatarepartof the Investment Prospectus. In this way, some AA activities will be “operationalized” by anInvestment Prospectus (IP) that is a separate document and describes a set of investments thatGovernment, the private sector developers, civil society organisations, finance organizations andotherstakeholderscansupport.

The IP contains investment opportunities and a priority projects pipeline emanating frompriorityprojectareas identifiedintheAA.Theprojects intheIParethosethatcanbeimplementedintheshort term and have been prepared adequately to attract investments. The IP projects consist ofboth, infrastructural andnon-infrastructural projects. TheAApresents the strategic elements andproject priorities for the IP. The IP has Kenya’s status of why investors should invest in Kenya’senergy sector considering both national and sector level investment conduciveness and theinstitutionalframeworkthatwillsupportIPimplementation.

Figure9:ActionAgendaandInvestmentProspectuslinkages

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5 REFERENCES

1. ReviewofSolarPVmarketdevelopmentinEastAfrica

2. GlobalActionAgenda,April2012-Extractedfrompage7oftheSustainableEnergyForAll

3. GlobalAllianceforCleanCookstoves-KenyaCountryActionPlan(2013)

4. BiomassEnergyUseinKenyabyPracticalAction,EasternAfrica(2010)

5. ConstitutionofKenya (2010), FourthSchedule,Distributionof functionsbetweenNational

andtheCountyGovernments

6. Global Village Energy Partnership. (2012).KenyaMarketAssessment. Retrieved January 6,2015, from Global Village Energy Partnership: http://cleancookstoves.org/binary-

data/RESOURCE/file/000/000/186-1.pdf

7. GoK&SE4ALL.(2013).RapidAssessmentandGapAnalysis(RAGA).

8. IEA.(2014).KeyWorlsStatistics2014Edition.RetrievedJanuary07,2015,fromInternational

Energy Agency website: http://www.iea.org/publications/freepublications/publication/key-

world-energy-statistics-2014.html

9. Kenyadistributionmasterplan2013

10. KenyaFactsandFigures2014,KenyaNationalBureauofStatistics

11. KenyaFinancialSectorStabilityReport2014

12. KenyaNationalBureauofStatistics,EconomicSurveyReport,2014

13. KenyaPowerLightingCompanyAnnualReport2012-2013.

14. KenyaPowerLightingCompanyAnnualReport20132014

15. Mugo,F.andGathui,T.(2010)BiomassenergyuseinKenya

16. NationalEnergyPolicy(draft)

http://www.erc.go.ke/images/docs/National_Energy_Petroleum_Policy_August_2015.pdf

17. PracticalAction,EasternAfricaOctober(2010)BiomassenergyuseInKenya

18. Putti, D. V. (2012,October 30). EnergyAccess in Africa -WB/ESMAP Initiatives. Retrieved

November 03, 2014, from ECREEE website:

http://www.ecreee.org/sites/default/files/event-att/ghana_ppt.pdf

19. SE4ALL. (2012, April 01). Sustainable Energy for All - Global Action Agenda. Retrieved

November 05, 2014, from Sustainable Energy for All:

http://www.un.org/wcm/webdav/site/sustainableenergyforall/shared/Documents/SEFA-

Action%20Agenda-Final.pdf

20. http://www.solarwirtschaft.de/fileadmin/media/pdf/intersolar2013/4-Muchunku-Solar-P-

Market-Kenya.pdf

21. SynopsisforKenyacountrypolicypaper2013

22. TheGlobalLPGPartnership(GLPGP)KenyaMarketAssessment,2013

23. World Bank. (2014). World Development Indicators. Retrieved February 19, 2015, from

WorldDevelopmentIndicators:http://wdi.worldbank.org

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ANNEX1:DEFINITIONS

Energy:Ameasureof theabilityofabodyor system todoworkorproducea change,expressedusuallyinjoulesorkilowatt-hours(kWh).

Energypoverty:Theabsenceofsufficientchoice inaccessingadequate,affordable,reliable,clean,highquality,safe,benignenergyservicestosupporteconomicandhumandevelopment.

AccesstoModernEnergyServices:Definedasaccesstoelectricityandcleancookingfacilitiese.g.fuelsandstovesthatdonotcauseairpollutioninhouses(source:InternationalEnergyagency).

Clean Energy: Heat and electricity produced from renewable sources, generating little or nopollutionoremissions.

ElectricityTransmission:Electricitytransmissionistheprocessbywhichlargeamountsofelectricityproducedatpowerplants (suchashydro,geothermal, thermalandwind), is transferredover longdistances for eventual use by consumers. Due to the large amount of power involved, and thepropertiesofelectricity,transmissionnormallytakessplaceathighvoltage(132-kilovoltorabove)toreducelossesthatoccuroverlongdistances.

ElectricityDistribution: Electricity isusually transmitted toa substationnearapopulatedarea.Atthesubstation,thehighvoltageelectricityisconvertedtolowervoltagessuitableforconsumeruse,andthendistributedtoendusersthroughrelativelylow-voltageelectricitydistributionlines.

GreenEnergy:Referstotheenergyfromnaturalsourcese.g.sunlight,wind,rain,tides,plants,algaeand geothermal heat. These energy resources are renewable, meaning they are naturallyreplenished.

RenewableEnergy:Referstotheenergythatoccurnaturally, theoretically inexhaustiblesourceofenergy suchasbiomass, solar, tidal,wind,waveandhydroelectricpower that isnotderived fromfossilornuclearfuel.

81

ANNEX2:THESUSTAINABLEENERGYFORALL(SE4All)INITIATIVE

ThisActionAgenda(AA) inthecontextofSE4All initiativepresentsasector-wide long-termvision

on SE4All goals and the country action to achieve the set goals. The global goals are: Universal

access tomodern energy services, doubling global rate of improvement of energy efficiency and

doubling the global share of RE in the energy mix by 2030. Kenya has targets to match specific

countrydevelopmentneedshence thisAAhasspecificgoals forKenyawith intermediateandend

targets based on the country’s Vision, policies and development plans and programmes. Where

nationaltargetsarenotdefined,theglobalSE4Allgoalsareassumed.

OnDecember21st,2012,theUnitedNationsGeneralAssemblydeclared2014–2024theDecadeof

SustainableEnergyforAll.Worldwide,1.2billionpeople,nearlyonepersoninsixontheplanet,lack

access toelectricity.More than twiceasmany,2.8billionpeople, relyonwood, coal, charcoalor

animal waste for cooking and heating. This creates major barriers to eradicating poverty and

buildingsharedprosperity.

The SE4All Global Action Agenda (AA) was

issued in April 2012 and it is based on a

frameworkproposingaglobalAAforuniversal

energy access, foster EE and boost investment

in RE. The SE4All goals are expected to be

achieved through a number of High Impact

Initiatives (HIIs), which are targeted, on-the-

ground programs or projects, and categorized

intoHighImpactOpportunities(HIOs)whichare

categoriesofactionthathavebeenidentifiedas

havingsignificantpotentialtoadvancethethree

goals. The hierarchy between the Objectives,

theHIOsandtheHIIsaredepictedinthefigure

ontheright.

Approximately 50 High Impact Opportunities

have been identified to date115 but only 10 are confirmed which are: Advanced Lighting and

Appliance Efficiency, Building Energy Efficiency, Energy and Women’s Health, Finance, Modern

CookingAppliancesandFuels,Off-GridLightingandCharging,PhaseoutofGasFlaring,Sustainable

Bioenergy, Sustainable Energy for Island Economies, andVehicle Fuel Efficiency. TheActionAreas

addressalmost95%ofglobalenergyconsumption,keycomponentsofproductiveenergyuse,and

the supporting mechanisms needed to overcome the most common impediments to action116

(SE4All,2012).TheGlobalActionAgendaisdisaggregatedintoeleven(11)actionareasasshownin

Figure 11. Of these, seven (7) are related to sectoral areas and four (4) addressing the enabling

115http://www.se4all.org/actions-commitments/high-impact-opportunities

116Extractedfrompage7oftheSustainableEnergyForAll–AGlobalActionAgenda,April2012

Figure10:SE4AllInitiativegoals

82

environment117.

Figure11:ActionAreasoftheGlobalActionAgenda

TheSE4AllGlobalAAreliesonthefullparticipationofallstakeholdersandimplementationofHIOs;

both having a direct impact towards reaching and sustaining the SE4All objectives. The HIOs can

accelerateaction,mobilizeresourcesanddriveoutcomesbybuildingstrongpartnerships,fostering

commonactionsandshapingsustainablecommitments.

Energyisnotagoalinitself,butakeydriverfordevelopment.Thetabularrepresentationbelowin

Figure 12 shows how the SE4All objectives and the interventions (initiatives) included under the

HIOsdrivesustainabledevelopment118(SE4All,2012).

Figure12:SE4ALLframeworktowardsSustainableDevelopment

TheSE4Allpropositionisthatinordertoachievetheinitiative’sobjectivesallstakeholdersneedto

play a leadership role119, National Government must design and implement a set of integrated

117Adaptedfrompage8oftheSustainableEnergyForAll–AGlobalActionAgenda,April2012

118BasedonSustainableEnergyForAll–AGlobalActionAgenda,April2012

119Adaptedfrompage7oftheSustainableEnergyForAll–AGlobalActionAgenda,April2012

83

countryactions (i.e.countryactionplans);Privatesectorprovidesbusinessandtechnicalsolutions

and drives investment; and Civil society organizations advocate and monitor public policy and

businessesactions.

ANNEX3:STAKEHOLDERSCONSULTEDINTHEDEVELOPMENTOFAA

2. CoordinationMeeting,19thMarch2014

Name Organisation email

1 PeterZhou HCL [email protected]@global.bw

2 FaithWandera MinistryofEnergyandPetroleum(MoEP)

[email protected]

3 Eng.IsaacKiva MoEP [email protected]

4 TimothyRanja UNDP [email protected]

5 EdwinNateminya UNDP/GovernmentofKenya nateminya@[email protected]

6 JohnK.Maina MoEP [email protected]

7 PaulN.Mbuthi MoEP [email protected]

8 BonifaceKinyanjui KenyaPowerandLightingCompany(KPLC)

[email protected]

9 SteveThorne SouthSouthNorth(AfDB/UNDP/NEPADadvisor)

[email protected]

10 KarinSosis AfricanSolarDesigns(ASD) [email protected]

11 NicholasGachie KenyaAssociationofManufacturers(KAM)

[email protected]

12 MarkHankins ASD [email protected]

13 MosadElmissiry NEPAD [email protected]

14 CharlesMuchunku KenyaRenewableEnergyAssociation(KEREA)

[email protected]

15 UyiEdokpolo XBRL [email protected]

16 EveOdete PracticalActionEA [email protected]

17 DanielOsiemo NEPADKenyaSecretariat [email protected]

84

3. Listofprivatesector,governmentandcivilsocietyworkshopparticipants

SustainableEnergyforallcountryprocessworkshopondevelopmentofnationalactionagendaandinvestmentprospectusheldon3rdJune2014,atBestWesternPremier–Nairobi.

# Name Organization Emailaddress

1 ElizabethO’grady PowerGenRenewableEnergy

[email protected]

2 FaithNangabo CarbonAfrica [email protected]

3 JeffM.Murage K.A.M–RTAP [email protected]

4 MosadElmissiry NEPAD [email protected]

5 MathewKimolo Klarisse(K)Ltd. [email protected]

6 GeorgeBowman AzimuthPower [email protected]

7 JamesOchieng AgalaInternationalDist.Ltd [email protected]

8 BrianKinuthia EEDAdvisoryLtd. [email protected]

9 StephenMigwi KenyaSolarEnergy [email protected]

10 AishaAbdulaziz KEREA [email protected]

11 WanjikuManyau PetroleumInstituteofE.A [email protected]

12 SteveThome AFDB [email protected]

13 MarkMuthamia NorkenInternationalLtd [email protected]

14 VioletOmwenga ViabilityAfrica [email protected]

15 FaithWandera MoEP [email protected]

16 PaulN.Mbuthi MoEP [email protected]

17 JohnK.Maina MoEP [email protected]

18 NateminyaEdwin UNDP [email protected]

19 WinifredW.Guchu Flowmatics [email protected]

20 JennyFletcher AeolusKenya [email protected]

21 KanyattaMwangi Flowmatics [email protected]

22 BernardOsawa Frontier [email protected]

23 WilfredOlal KenyaSolarNetwork [email protected]

24 KenMacharia TafsiriPureEnergySolutionsCo.Ltd.

[email protected]

25 JesseMoore M-KopaSolar [email protected]

26 UyiEdokpolo XBRLEastAfrica [email protected]

27 MarkHankins HCL [email protected]

28 PeterZhou HCL [email protected]

85

4. ListcoreteamofSE4ALLcountryprocessparticipants

Sustainable energy for all (se4all) country process workshop on development of national actionagendaandinvestmentprospectustobeheldfrom3rd–5thJune2014,atGreatRiftValleyLodgeandGolfResort–Naivasha.

# Name Organization Tel.No EmailAddress

1 FranklineKaburu

NEPADKenyaSecretariat 0727280323 [email protected]

2 ShammahKiptanui

GeothermalDevelopmentCompany

0723824988 [email protected]

3 PeterOuma KenyaElectricityGen.Co 0722860012 [email protected]

4 MosadElmissiry

NEPADHeadOffice +27718621559 [email protected]

5 PeterP.Zhou HCL +26771693104 [email protected]

6 MarkHanknins

HCL 0722527710 [email protected]

7 JohnK.Maina MoEP 0722655161 [email protected]

8 SteveThome AFDBSE4ALLAfricaHub +255765587332 [email protected]

9 CarolineKelly RuralElectrificationAuthority


10 AishaAbdulaziz

KenyaRenewableEnergyAssociation


11 FaithWandera

MoEP 0721738848 [email protected]

12 PaulN.Mbuthi


13 PatrickM.Kariuki

KenyaForestService 0722801309 [email protected]

14 EdwinNateminya

UNDP/GOK 0726389853 [email protected]

15 NicholasGachie

K.A.M 0721118159 [email protected]

16 ElizabethK.Wanjala


86

5. ListofparticipantsforCivilSocietyOrganisation

Consultationheldfrom5th–7thJune2014,atGreatRiftValleyLodgeandGolfResort–Naivasha.

# Name Organization Tel.No EmailAddress

1 JamesMaillu GVEP 0722644631 [email protected]

2 BenjaminK.Kiuru

ACT 0722376512 [email protected]

3 LydiaMuchiri PracticalAction 0722777944 [email protected]

4 WairimuNgugi PracticalAction 0720172917 [email protected]

5 TimothyRanja UNDP 0710739964 [email protected]

6 JacksonBambo KFWG 0729200595 [email protected]

7 GeorgeNyamu KENFAP 0722360595 [email protected]

8 JechoniahKitaga

SNV 0722686768 [email protected]

9 JohnK.Maina MoEP 0722655161 [email protected]

10 PaulMbole NCA 0724747918 [email protected]

11 SteveThome AFDB +27825752056 [email protected]

12 IreneMwaura WWFKenya 0725738346 [email protected]

13 MusunguWycliffe

REECON 0715667226 [email protected]

14 FaithWandera MoEP 0721738848 [email protected]

15 MyraMukulu C.C.A.K 0733975103 [email protected]

16 KevinKinusuK Hivos 0725655864 [email protected]

17 EveOdete PracticalAction/Consultant


18 HannaWanjiru EnergiaKenyaNetwork 0723713213 [email protected]

19 MarkHankins HCL 0722527710 [email protected]

20 PeterP.Zhou HCL +26771693104 [email protected]

21 MosadElmissiry

NEPAD +277188621559 [email protected]

22 JohnsonKimani KCCWG/PPSConsulting 24052894 [email protected]

23 ReimundHoffman

GIZ 0722803882 [email protected]

24 JohnMaina SCODE 0722610105 [email protected]

25 ElizabethK.Wanjala

MinistryOfEnergyandPetroleum


26 EdwinNateminya

UNDP/GOK 0726389853 [email protected]

87

6. Listoftrainingworkshopparticipants

Day1-ListofAttendees

No NAME ORGANISATION EMAILADDRESS

1 PeterP.Zhou HCL/EECG [email protected]

2 DicksonV.Kisoa MOE&P–Kenya [email protected]

3 J.J.Gitonga MOE&P–R.EDept [email protected]

4 EdwinNateminya UNDP/GOK [email protected]

5 IngerHaugsgjerd UNDP–Kenya [email protected]

6 MosesKerre KETRACO [email protected]

7 LydiaMuchiri PracticalAction [email protected]

8 PaulineNjoroge NEPADKenya [email protected]

9 AlexS.Mboa KEBS [email protected]

10 MosadElmissiry NEPADHeadoffice [email protected]

11 MarkHankins HCL/ASD [email protected]

12 HassanAbdi GeothermalDev.Co(GDC) [email protected]

13 KarinSosis HCL/ASD [email protected]

Day2-ListofAttendees

No. NAME ORGANISATION EMAILADDRESS








9 NicholasThairu NEPADKenya [email protected]


12 ElijahKirui MOE&P [email protected]



15 DennisKibira ASD [email protected]

16 JimLawyOkuto KFS [email protected]

88

Day3-Listofattendees

No. NAME ORGANISATION EMAILADDRESS



3 J.J.Gitonga MOE&P–R.EDept [email protected]

4 EdwinNateminya UNDP/GOK [email protected]





9 AlexS.Mboa KEBS [email protected]





89

ANNEX4:CONSULTATIONUNDERREVIEWANDCOUNTYAWARENESS

1. ListofTechnicalTeamMembers(SE4ALLTT)

TheTTcomposedofexpertfromtheMoEP,CSOs,ITPowerconsultantanddevelopmentpartners.ThefunctionsincludedreviewoftheAA,settingof

thebaselineyearandtargets,TheConsultantpresentedAAprogresstotheteamforcommentsandinputs.

Name Organisation Designation EmailAddress1. Eng.IsaacKiva MinistryofEnergyandPetroleum(MoEP) Director–RenewableEnergy(RE) [email protected]

2. FaithOdongo MoEP DeputyDirector-RE/SE4ALLCFP [email protected]

3. PaulMbuthi MoEP RenewableEnergyofficer [email protected]

4. JohnMaina MoEP RenewableEnergyofficer [email protected]

5. DicksonKisoa MoEP RenewableEnergyofficer [email protected]

6. JuliusGitonga MoEP RenewableEnergyofficer [email protected]

7. JohnMwaura MoEP CommunicationOfficer [email protected]

8. TimothyRanja UnitedNationsDevelopmentProgramme

(UNDP)

ProgrammeAnalysist [email protected]

9. IngerHaugsgjerd UNDP ProgrammeOfficer [email protected]

10. AshingtonNgigi IntegralAdvisoryLtd–TeamLeader AssociateConsultant [email protected]

11. JamesMuyula IntegralAdvisoryLtd AssociateConsultant [email protected]

12. EdwinNateminya IntegralAdvisoryLtd AssociateConsultant [email protected]

13. PaulineWanjohi IntegralAdvisoryLtd AssociateConsultant [email protected]

14. FedericoS.Fische AlternativeSustainableEnergy LeadConsultant [email protected]

15. CarolineToroitich SNV SeniorRenewableEnergyAdvisor [email protected]

16. LydiaMuchiri PracticalAction(PA)EasternAfrica Energyofficer [email protected]

17. DianaNgaira PAEasternAfrica Communicationofficer [email protected]

18. IreneMwaura World-WideFund(WWF) EnergyOfficer [email protected]

19. PhilipOdhiambo WWF EnergyOfficer [email protected]

20. PaulMbole NorwegianChurchAid(NCA) CountryProgrammeCoordinator [email protected]

90

2. Listoftechnicalcommittee(SE4AllTC)members

The TC composed of expert from theMoEP, CSOs, utility, Private sector, IT Power consultant and development partners. The functions included

reviewoftheAA.ThereviewmeetingheldatMaanzoniLodgebetween27-29July2015.

1. Eng.IsaacKiva MinistryofEnergyandPetroleum(MoEP) Director–RenewableEnergy(RE) [email protected]

2. FaithOdongo MoEP DeputyDirector-RE/SE4ALLCFP [email protected]

3. PaulMbuthi MoEP RenewableEnergyofficer [email protected]

4. JohnMaina MoEP RenewableEnergyofficer [email protected]

5. DicksonKisoa MoEP RenewableEnergyofficer [email protected]

6. JuliusGitonga MoEP RenewableEnergyofficer [email protected]

7. JohnMwaura MoEP CommunicationOfficer [email protected]

8. TimothyRanja UnitedNationsDevelopmentProgramme(UNDP) ProgrammeAnalysist [email protected]

9. IngerHaugsgjerd

UNDP ProgrammeOfficer [email protected]

10. AshingtonNgigi

IntegralAdvisoryLtd–TeamLeader AssociateConsultant [email protected]

11. JamesMuyula IntegralAdvisoryLtd AssociateConsultant [email protected]

12. EdwinNateminya

IntegralAdvisoryLtd AssociateConsultant [email protected]

13. PaulineWanjohi

IntegralAdvisoryLtd AssociateConsultant [email protected]

14. FedericoS.Fische

IT-Power LeadConsultant [email protected]

15. KarenThuranira

IntegralAdvisoryLtd Administrator [email protected]

16. CarolineToroitich

SNV SeniorRenewableEnergyAdvisor [email protected]

17. LydiaMuchiri PracticalAction(PA)EasternAfrica Energyofficer [email protected]

18. DianaNgaira PAEasternAfrica Communicationofficer [email protected]

19. IreneMwaura World-WideFund(WWF) EnergyOfficer [email protected]

20. Philip WWF EnergyOfficer [email protected]

91

Odhiambo

21. PaulMbole NorwegianChurchAid(NCA) CountryProgrammeCoordinator [email protected]

22. CharlesNjoroge

KETRACO Economist [email protected]

23. LucyMukiri GeothermalDevelopmentCompany(GDC) ChiefOfficer,CorporatePlanning

&Strategy

[email protected]

24. AndrewNjoba KenyaAssociationofManufacturers(KAM) Accountant [email protected]

25. JamesMaillu GVEP CountryManager [email protected]

26. AnneIngwe GIZ Programmemanager. [email protected]

27. JohnKioli KenyaClimateChangeWorkingGroup Chairman [email protected]

28. EnosOtieno KenyaRenewableEnergyAssociation(KEREA) Vice-ChairmanKEREA [email protected]

29. JacksonMutonga

GIZ-Prosolar Technicalofficer [email protected]

30. PeterMuhia SCODE Managementconsultant [email protected]

31. Timothy

Mwangi

SNV RenewableEnergyadvisor [email protected]

32. Maimuna

Kabatesi

HIVOS AdvocacyOfficer-Climateand

Energy

[email protected]

33. DavidNgugi KAM Energyefficiencyengineer david.ngugi@@kam.co.ke

34. Mary

Appophia

KenyaYoungGreen Youthrepresentative [email protected]

35. DanielWanjohi

GlobalAllianceCleanCookstove(GACC) Regionalrepresentative [email protected]

36. GeorgeOluga KenyaForestryServices SeniorForestOfficer [email protected]

37. XavierMutava KenyaNationalDomesticBiogasProgramme

(KENDBIP)

AssistantRenewableEnergy

Engineer

[email protected]

38. MicheleAkute KenyaPowerandLightingCompany(KPLC) AssistantEngineer [email protected]

39. RobertChirchir

EnergyRegulatorycommission(ERC) Engineer [email protected]

40. NathanBogonko

KenyaIndustrialResearchandDevelopment

Institute(KIRDI)

Cookstoveresearcher [email protected]

92

3. PrivatesectorconsultationonSE4Allpriorityactionareas

ThePrivateEnergySectorstakeholders’consultationheldatGarciaGardenson19

th

September2015.Themeetingobjectivewasidentifyingofpriority

actionareas.

Name Institution EmailAddress1. FaithWandera MinistryofEnergyandPetroleum(MoEP) [email protected]

2. PaulMbuthi MoEP [email protected]

3. AshingtonNgigi IntegralAdvisoryLtd–TeamLeader [email protected]

4. JamesMuyula IntegralAdvisoryLtd [email protected]

5. Paulinewanjohi IntegralAdvisoryLtd [email protected]

6. EdwinNateminya IntegralAdvisoryLtd [email protected]

7. KarenThuranira IntegralAdvisoryLtd [email protected]

8. MohammedUhuruKadhi ConsumerChoice [email protected]

9. ShadrackOmwenga LeanEnergysolutions [email protected]

10. DineshTembhekal LeanEnergySolutions [email protected]

11. PeterA.Ndolo SanataTrustGilgil [email protected]

12. TonyNyagah StraussEnergy [email protected]

13. MusunguWyciffe REECON [email protected]

14. KennethNdua STAMP kenneth.nduaestamp.co.ke

15. MatThomson AzimuthPower [email protected]

16. WilkistaAkinya AfricanSolarDesigns [email protected]

17. JulieOyato OilFieldMoversLtd [email protected]

18. MugweManga OlSuswaEnergyLtd [email protected]

19. SaleemMahmoodAhmed AlternateEnergy [email protected]

20. JosephKioMuthokah ChlorideExideKenya [email protected]

21. PaulWalobwa BarclaysBank [email protected]

22. BostonNyer BurnManufacturers [email protected]

23. JamesKariuki IRDALtd [email protected]

24. PaulineTanui SIMGASLtd [email protected]

25. JacksonMutonga GIZ-ProSolar [email protected]

26. JaphethB.Sayi KTDA-Power [email protected]

27. KaranjaMburu TemiHoldingsLtd [email protected]

93

28. SimonM.Guyo Craftskills [email protected]

29. EphantusG.Wamae I.S.AKenyaLtd [email protected]

30. GeorgeM.Simuyu SimbiRosesLtd [email protected]

31. PatrickKimathi SkynotchEnergyAfrica [email protected]

32. PatrickG.Thimba ABPLtd [email protected]

4. ListofparticipantsattendedSE4Allcountyawarenessforum

TheSE4ALLcountyawarenessforumstartedwiththeTTmembershavingameetingwithCouncilofGovernors(CoGs)thatbroughtonboardCECs

energy and clusteringof counties for sensitization forum. SE4All county awareness forumon going andbeing carriedout byMoEP, CSOs and the

consultant(ITPowerUKacrossthe47counties).Theobjectivesofthesensitizationforumare:

• SensitizationonSE4Allinitiatives

• Sensitizationonenergypolicyandregulations

• Sensitizationoncountyenergyplanningframework

SE4ALLsensitizationhasalsobeenthroughdistributionofSE4ALLbrochuresandpublicationofSE4Allsupplementinthedailynewspaper.Boththe

brochures and supplement have been through support from Practical Action, SNV and UNDP. WWF supported in the facilitation for the SE4All

technicalcommitteeworkshopfortheAAreviewandpriorityactionareasidentification.

KISUMUANDKISIICLUSTERS

NAME COUNTY DESIGNATION EMAIL1 PhareshRatego HomaBay CECEnergy [email protected]

2 DennnisOtieno HomaBay REEngineer-County [email protected]

3 IsraelAuma Kisumu CEOVicensaInvestments [email protected]

4 RonohJ.K. Kisumu Engineer-CountyGreenEnergyandClimateChangeAuthority [email protected]

5 EricOmaga Kisumu Engineer-CountyGreenEnergyandClimateChangeAuthority [email protected]

6 EuniceOwino HomaBay CCOEnergy [email protected]

7 OmungaOriango HomaBay MCA-ChairmanEnergy [email protected]

8 JosephShyanguya Kisumu Director-CountyGreenEnergyandClimateChangeAuthority [email protected]

9 EvansGichana Kisumu M&E-CountyGreenEnergyandClimateChangeAuthority [email protected]

10 CheroOmondi Siaya CECRoadsandEnergy [email protected]

11 LilianOgombo Kisumu CCOEnergy [email protected]

12 EverlyneHeyi Siaya CSO-ClusterManagerGIZEndev [email protected]

13 BenOdhiambo Kisumu ExecutiveOfficer-KenyaNationalChamberofCommerce [email protected]

94

13 PeterOgutu HomaBay Clerk [email protected]

15 FredrickOtieno HomaBay PA [email protected]

16 BarackSidho Kisii DirectorEnergy [email protected]

17 LindaAchieng Kisii OfficerEnergyCenter [email protected]

18 GetrudeAyieko Kisii DirectorAdministrator [email protected]

19 MaxwellMagoma Kisii PrivateSector-KenolKobil [email protected]

20 ShemMigosi Kisii CSORep [email protected]

21 AineahAloo Migori DirectorEnergy [email protected]

22 WycliffeOngera Kisii CSO-GIZEndevRep [email protected]

23 ClementNchogu Nyamira DirectorWater [email protected]

24 JohnMungai Kisii EnergyCenterManager [email protected]

25 DoriceOmbuna Migori Gender

26 JohnMaina Nairobi PREO/TTMember [email protected]

27 JamesMuyula Nairobi TTMember [email protected]

28 DianaNgaira Nairobi TTMember [email protected]

KAKAMEGAANDUASINGISHUCLUSTERS

NAME COUNTY DESIGNATION EMAIL1 VictorIjaika Vihiga CSO [email protected]

2 AbigaelKevogo Vihiga CSO [email protected]

3 WilsonOongo Vihiga Nexus-Water [email protected]

4 FredrickMakokha Busia CSO [email protected]

5 EdwinNateminya Nairobi IntegralAdvisoryLtd [email protected]

6 JohnMwaura Nairobi MoEP [email protected]

7 DicksonKisoa Nairobi MoEP [email protected]

8 HillaryShikuba Kakamega MITP&E [email protected]

9 LibinusOduor Kakamega MemberofAssembly(MCA) [email protected]

10 Dr.CollinsMatemba Kakamega ChiefExecutiveCommittee(CEC)–Publicworks&Energy [email protected]

11 VictoriaZillah Kakamega CountyAdministrator [email protected]

12 LeonidahAnguba Kakamega GenderAdvisor [email protected]

13 RhodahMbandu Vihiga ChiefOfficer(CO) [email protected]

13 WinnieEssendi Vihiga ResearchOfficer [email protected]

15 DavidNgoseywi Vihiga CountyAdministrator [email protected]

16 JamilaAnjere Vihiga MCA [email protected]

17 JohnMulefu Busia PrivateSector [email protected]

18 ChristineWasike Bungoma CO-TradeandEnergy [email protected]

19 ErickNabwana Bungoma EnergyDept [email protected]

95

20 GregoryOdeke Busia County [email protected]

21 WalulobaLucas Busia MCA [email protected]

22 FestusKuniya Baringo CO [email protected]

23 JohnKiprop Baringo CSO [email protected]

24 JohnKamarei Baringo CSO

25 PeterChepkonga Baringo PrivateSector [email protected]

26 EvelyneMunihu Baringa CSO-TechnicalAssistant [email protected]

27 MikeMosi Baringo CSO-Director [email protected]

28 PualineKogo UasinGishu Nexus–Water [email protected]

29 PhilipMeli UasinGishu CEC [email protected]

30 JosephChelulei UasinGishu Director [email protected]

31 AlfapLel Nandi CEC [email protected]

32 AlexKiplimo ElgeiyoMarakwet PrivateSector

33 AmosKosgei ElgeiyoMarkwet PrivateSector [email protected]

34 DavidNgugi ElgeiyoMarakwet COC [email protected]

96

ANNEX5:PROCESSOFDEVELOPINGAAINKENYA

TheprocessofdevelopmentoftheActionAgendaandInvestmentProspectusledbytheMinistryofEnergy and Petroleum and included consultations fromdevelopment partners, private sector andcivilsocietyorganisations.Thedetailsoftheprocessisasfollows;

ThekeysourcesofinformationonwhichthisAAwasdevelopedwere:

• StocktakingandGapAnalysisReport120producedwithsupportfromUNDP• Review of key energy sector documents, as provided by theMinistry and obtained from

othersources• Stakeholderconsultationswithprivatesector,publicsectorandcivilsociety• Trainingworkshopforselectedkeygovernmentandothercountrystakeholdersconducted

aspartoftheproject.• SE4AllCountyawarenessforums

StockTakingandGapAnalysisReport

StocktakingandgapanalysisisthesecondstageofcountryprocessintheimplementationofSE4Allinitiativeandthekeyobjectiveoftheexerciseistoidentifythegapsandbarrierstoenergyuseandaccesswithaviewtodevelopinganappropriatenationalactionplantoaddressthem.

The AA started by building on the Gap analysis report by updating information on the gaps andbarriersandsoliciting forpossibleactions toaddress them.Someof thegapsalready identified intheStockTakingandGapanalysisstudywasalsousedintheframingofpriorityreformsandpriorityprojectsbelow.

Table19:IdentifiedEnablingEnvironmentandGapsfromStockTakingandGapAnalysis

SE4ALLGoal EnablingEnvironmentgaps PriorityProjectareas

Energy ServiceAccess

• Need for Financial frameworks for MFIs andprojectdevelopmentand riskguarantees/buydowns

• NeedforPPPpolicy• Inadequate standards and enforcement of

standardsandregulations• Insufficienttechnicalcapacity

• Inadequate LPG storage anddistributioninfrastructure

• Inadequate off-grid andmini-grid powerdevelopment

EnergyEfficiency

• Financialframeworksforenergyaudits• Enhanced capacity for energy audit and

operationalization & enforcement ofregulationsandstandards

• Lackofpolicyincentives• LimitedawarenessonEEcostandbenefits

• Institute Transmission andDistributionlossreduction

• Distributed generation closetoloadcentres.

120Stock-takingandGapAnalysisReport(SE4ALL),May2013

97

SE4ALLGoal EnablingEnvironmentgaps PriorityProjectareas

RenewableEnergy

• PPPmodelenhancement• Financial frameworks for Investment and risk

guarantees/interestbuydowns• Need to finalize power wheeling policy &

tariffs,netmetering&banking,PPAstandardsforlargeprojects121

• Adequatestandardsandenforcementtoavoidcounterfeits

• Local manufacture andassembly to reduce costsandavailREtechnologies

• REResourceAssessment• Mini-grids• Testing facilities for RE

technologies

Documentreview

AtthestartoftheprojectMoEPprovidedtheteamwithkeyreportsanddocumentsrelevanttotheenergysectorandtheKenyangovernment’sactivitiesandplansastheylinktoenergyaccess,energyefficiencyand renewableenergy. The reportwas reviewedbyboth theSE4All technical teamandthe SE4All technical committee constituted of the MoEP, public utility, private sector, CSOs anddevelopmentpartnersintheirentirety,andsupplementedbyadditionaldocumentsfoundonlineorthroughothersources.

Stakeholderconsultations

Bilateral consultations were carried out at Inception Stage with some development partners,governmentandcivilsocietyandassociationorganizationstogatherviewsonwhat issuesneedtobe addressed with respect to SE4All goals in the country in terms of priority project areas andreformsrequired.TheoutputofthisprocesswaspresentedintheInceptionReportanddeliberatedin a Coordinationmeeting held together with the key energy sector stakeholders headed by theMoEP.

Three workshops were held during the period of 3rd to 7th June 2014 for the private sectorstakeholder,thegovernmentstakeholderandcivilsociety.TheNairobiprivatesectorworkshopwassponsored by the BizClim project and the government and civil society workshops were fullysponsoredbyUNDP.TheMinistryofEnergyandPetroleum(MoEP)ofKenyaledtheorganizationofall the workshops and officiated at the workshops providing expectations of the Government ofKenyafromtheprojectwithkeyministryofficialsactivelyparticipatingintheworkshops.TheSE4AllAfricaHubpartnersNEPAD,UNDPandAfDBwereallrepresentedatthe3workshopsandprovidedtheirsupportandguidance.

TheoverallobjectivesofthestakeholderworkshopsweretoconsultKenyastakeholderson:

• Creatingaconduciveenablingenvironmentforbothprivateandpublicinvestmentstotakeplaceintheenergysector;

• Identifying priority areas and projects that can contribute tomeeting the SE4All goals forKenya.

Thespecificworkshopobjectiveswere:

121StandardizedPPAfor10MWnowinplace.

98

• ToshareknowledgeontheglobalSE4All Initiative,approachtodevelopmentoftheSE4AllAction Agenda and Investment Prospectus, and the results of the Stocktaking and GapAnalysisstudyforKenya.ThelatterformingthebasisforthenextstepofidentifyingreformsandprioritySE4Allprojects.

• To Identity reforms to create conducive enabling environment for private and publicinvestmentsintheenergysector,andpriorityprojectstomeettheSE4AllgoalsforKenya.

• Torecommendpriorityactionsandstrategyforsustainedprivateandpublicinvestmentsinthe energy sector towardsmeeting SE4All for Kenya. The recommendationswill form thebasis for development of the SE4All ActionAgenda and Investment Prospectus for Kenya,whichwillguidesuchfutureprivateandpublicinvestmentsinthesector.

ThecontextofthediscussionfocusedonthethreeSE4AllgoalsofEnergyAccess,EnergyEfficiencyand Renewable energy, including the related seven Sectoral Action Areas (for projects) and fourEnablingActionAreas(forreforms).

Further consultation was done after the AA/IP validation workshop in March 2015 to includedecentralizedsystemandenergyefficiencyandreviewoftheAA/IPdocument.

Trainingworkshop

Thetrainingworkshopwasheldfrom13-15thAugust2014aspartoftheProjectResultArea3andwas sponsored from theBizClimprojectbudget.TheMinistryofEnergyandPetroleum (MoEP)ofKenyaidentifiedandinvitedtheparticipantstothetrainingworkshopandarepresentativeofMoEPofficiatedandchairedall3daysoftrainingsessions.

The HCL project team together with NEPAD conducted the training through presentations,facilitatedplenarydiscussionsandworkinggroupexercises.RepresentativesoftheUNDPandAfDBSE4AllAfricaHubattendedandofficiatedattheworkshop.

ThemainobjectiveofthetrainingworkshopwastoequipkeyKenyastakeholderstobefamiliarwiththeprocessof developing anationalAAand IPunder theSE4All Initiativehenceempowering thestakeholders to activelyparticipate in thedevelopmentof theAA& IP and to implementKenya’sprioritySE4Allenergyprojects.

Thespecificobjectivesoftheworkshopwere:

• ShareknowledgeonAAandIPstructures,requirementsandcontent;

• GivestakeholdersanopportunitytofamiliarizethemselveswiththedevelopmentofAAandIPthroughaprocessoflearningbydoing;and

• ApplythereformsandprioritySE4AllenergyprojectsidentifiedintheGapAnalysis,reviews,duringstakeholderworkshopsandconsultationsinthedevelopmentoftheAAandIP.

The Training workshop became an opportunity to deploy stakeholders to prioritize the priorityprojectareasandreformsfortheAAandtoinitiateformulationofprojectsfortheIP.

99

ANNEX6:KENYAENERGYINSTITUTIONSANDTHEIRFUNCTIONS

100

Figure13:ThePowerSector–organizationchart122

Figure14:RenewableEnergyDirectoratechart

122 Institution of Engineers of Kenya (IEK), 2012

REDirectoriate

AlternativeTechnologies

Solar

EEC&RD

EnergyAudits&

Management

BioEnergy

EnergyCenters BioFuels Environment

(KEEP)

101

ANNEX7:ENERGYINTENSIVEFLAGSHIPPROJECTS

FlagshipProjects Ref. Completion Energy(GWh)

Capacity(MW)

ICTPark 1 2015 2930 440

2ndContainerTerminalandMombasafreePort 2 2014 746 2

Juba-LamuRailway 3 2014 19 9

LamuPortincludingresortcities 4 2014 200 30

SpecialEconomicZones(Mombasa,Kisumu,Lamu) 5 2015 333 50

Iron&steelsmeltingindustryinMeruarea 6 2015 2097 315

Mombasa-Nairobi-Malaba-Kisumurailway 7 2017 27 18

LightrailforNairobiandsuburbs 8 2017 16 8

Resortcities(Isiolo,KilifiandUkunda) 9 2017 200 30

Total 6568 902

102

ANNEX8:ENERGYFORECASTINGWH(MARCH2013LCPDP2013-2033)

103

ANNEX9:PROPOSEDOUTLINEOFTHECOUNTYENERGYPLANNINGFRAMEWORK

AcknowledgementExecutivesummaryChapter1:Introduction

• Introduction:structureoftheplandocument• Location,Size,administrativeandpoliticalunits,demographics(population,income

levels),climate,economicactivities• ObjectivesandrationaleoftheEnergyplan• Methodologyusedindevelopmentoftheplan

Chapter2:EnergyResourcePotential• Describetheenergyresourcesandpotentialinthecountyincludingprojectionsbased

onavailabledata• Developedenergyresourcesinthecounty

Chapter3:CurrentStatusofEnergyUseDescribefocusthatwouldbeexpectedtoportrayenergydemandanduseinthecounty

i. Sourceofenergysupplyii. Statisticson:electricityconnectivity,numberhouseholds,Institutionsandsmallmicro

enterprisesusingcharcoal,firewood,kerosene,LPGgas,biogas,electricitycookingiii. Productiveuseofenergy

Chapter4:EnergyDemandintheCounty• Analysisofcurrentenergydemandbysector• ProjectedEnergyDemand

Chapter5:PolicyandRegulatoryFramework• ExistingpolicyandregulatoryframeworktoguideenergydevelopmentintheCounty

Chapter6:Proposedenergydevelopmentinterventions• Energyaccess• Renewableenergy• Energyefficient• Capacitybuilding• Financing

Chapter7:Financingoftheplanimplementation• Potentialfinancingsourcesandmodels• Prioritiesforinvestment

Chapter8:ImplementationPlan• Implementationschedule• Monitoring&Evaluation

References

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ANNEX10:INDICATORSFORKENYASE4AllINITIATIVE

Results Indicators

GoalSustainableEconomicGrowth

%ofreductionindeathsbyindoorairpollution(deaths/year)

GDPpercapita(US$/person*year)

Nationalelectricitygenerationcapacity(MW) Povertyinruralandurbanareas(%)

SE4AllGlobalObjective1:Universalaccesstomodernenergyservices

IncreaseElectricityAccess

Nationalelectricityaccessrate(%) Percentageofpopulationwithelectricityaccesscalculatedas%ofhouseholdswithconnections(off-grid/mini-gridhouseholds,theconnectioniscountedbasedonhowtheenergysolutioncanmeasureconsumption)

Energyconsumptionpercapita(kWh/person*year)

Increaseaccesstomoderncookingsolutions

Nationalaccessratetomoderncookingsolutions(%)

Percentageofpopulationwithaccesstomoderncookingsolutions.

SE4AllGlobalObjective2:Doublingshareofrenewableenergyinglobalenergymix

Increaserenewableenergyshareinnationalmix

ShareofREinthenationalenergymix(%) Proportionofinstalledcapacityfromrenewableenergysources,overthetotalinstalledcapacity

On-gridREinstalledcapacity(MW)

Off-gridREinstalledcapacity(MW)

Sustainablebiomassusedinprocessheat(%)

SE4AllGlobalObjective3:Doublingglobalrateofimprovementofenergyefficiency

Reduceenergyintensity

Reductionintheannualrateofenergyintensityperyear(%)

Energylossesinelectricitydistribution(%)